German supermarket sheds light on climate costs by selling food at true prices
Discount supermarket “Bini” seeks to raise the prices of its products for a week to reflect their true environmental cost. Could this have an impact on how food is priced and produced in Germany?
In 2023, Germany is witnessing a significant increase in food prices, with some essential products such as butter rising by up to 20 percent per month. However, environmental activists argue that these food prices do not reflect the environmental damage incurred during their production.
The German supermarket “Penny” highlights this issue through the “Wahre Kosten” (True Costs) campaign, which lasts for a week and includes nine selected products out of more than 3000 items.
The campaign includes all its 2,150 branches in Germany and will continue until Saturday, August 5th.
The manager, Stefan Gorgens, said:
“We notice that many of our customers are continuously struggling with the rising prices of food commodities. Nevertheless, we are compelled to confront the uncomfortable truth that our food prices do not reflect the environmental costs associated with the supply chain.”
The campaign reveals a rise in the prices of popular products such as sausages, which increased from 3.19 euros to 6.01 euros. Yogurt’s price also saw a 31 percent increase, going up from 1.19 euros to 1.56 euros, while mozzarella’s price surged by 74 percent, reaching 1.55 euros.
These increases were calculated in collaboration with the Nuremberg Institute of Technology and Greifswald University, and they reflect the predominant costs that are often overlooked, such as the damage caused by intensive agriculture and livestock feed production, groundwater pollution, and emissions of harmful pollutants.
Environmental associations and consumer protection organizations have praised this initiative and called for more impactful actions from politicians, industries, and traders.
Greenpeace activists estimate the environmental and climate damage resulting from meat and dairy production in Germany to be around 6 billion euros annually.
The organization calls for the cancellation of Value Added Tax (VAT) on plant-based foods and a substantial increase in VAT on meat and dairy products, which cause much greater environmental damage than fruits and vegetables. Activists argue that this will lead to a tangible shift in food consumption habits.
While many consumers have praised the initiative, the majority remain unwilling to participate, according to a survey by “YouGov.” Only 16 percent of Germans expressed their intention to buy products at ‘real’ prices, while 44 percent do not intend to do so. Approximately 30 percent of the survey participants mentioned that they don’t have a nearby “Penny” supermarket where they can shop.
“Benny” intends to donate the additional income to a project aimed at climate protection and preserving family farms in the Alps.
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