Higher minimum wage: expensive fruit and vegetable cultivation at risk!

Higher minimum wage: expensive fruit and vegetable cultivation at risk!

The increase in the legal minimum wage in Germany is causing a lot of discussion in agriculture. From January 2026, the minimum wage will increase from 12.82 euros to 13.90 euros per hour, and the following year it will increase to 14.60 euros, as daily news reported. This also means that foreign seasonal workers responsible for harvesting fruits and vegetables will benefit from these higher wages. This development has sparked concern among farmers, who fear that increased wages could make domestic produce more expensive and less attractive to grow.

Especially in southwest Germany, where fruit and vegetable cultivation is flourishing, many companies fear that they could switch to cheaper goods from abroad if the price innovation is passed on to customers. Since the introduction of the minimum wage in 2015, a third of asparagus farms and a quarter of strawberry growers have had to close. However, agricultural economist Hildegard Garming believes that not all fruit and vegetable production will decline. Rather, there will be changes in the operational structures.

Structures in transition

Farmers are thinking about switching to crops that are less labor-intensive to make their production more efficient and cost-effective. Benjamin Luig from the Construction-Agriculture-Environment Industrial Union sees opportunities in setting high wages if production is well organized. There were similar positive developments in the Netherlands, where the strawberry harvest increased threefold despite higher minimum wages.

Another aspect is the increase in protected cultivation, such as in greenhouses or polytunnels, which could increase yields. In this context, Simon Schumacher from the Association of South German Asparagus and Strawberry Growers expects the first use of robots to harvest asparagus next year, which could further optimize the process.

Demands and challenges

However, the challenges do not remain unanswered. Agriculture Minister Rainer is conducting a critical review of the exemptions for seasonal workers. The farmers' association, for example, demands that seasonal workers should only receive 80% of the minimum wage, but this is rejected by both the SPD and the unions. These emphasize that seasonal workers must not be “second-class employees”.

Farmer Jörg Umberg, who currently employs 120 seasonal workers, reports a workload of up to ten hours a day and makes it clear that 40-60% of operating costs are already caused by wages. In we look at the wage landscape in other European countries: The minimum wage in France is 11.88 euros, in Spain it is 8.37 euros and in Poland it is only 7.08 euros. In view of these differences, it is clear that the competitive pressure on Germany's farmers continues to increase.

Umberg has already taken measures to respond to the higher wages: He reduced the area under cultivation for strawberries from 40 to 20 hectares and is increasingly relying on direct marketing, where customers can pick themselves. Despite the upcoming wage increases, he plans to hire fewer workers, which poses significant challenges for the entire industry.