The Growing Debate Over Minimum Wage and Fruit Farming in Germany
In the heart of Telgte, a significant player in the strawberry plant industry, KRAEGE Beerenpflanzen, has emerged as a focal point in the ongoing discussion surrounding minimum wage laws and the future landscape of German fruit farming. This company has been producing a portion of its strawberry seedlings in Morocco for several years, a practice that is not entirely new but has gained renewed attention following a report from WDR on July 27, 2026. In this report, Managing Director Markus Staden highlighted the stark contrast in labor costs between Germany and Morocco, drawing attention to the challenges faced by the German fruit farming sector amidst rising production costs and competitive pressures from cheaper imports.
KRAEGE, which has been operational since 1958, specializes in the propagation of strawberry plants, managing around 300 hectares of leased land and offering over 50 different varieties, including green plants, frigoplants, and waiting bed plants. According to the company, the production process is regulated by the North Rhine-Westphalia Chamber of Agriculture. Annually, KRAEGE sells approximately 150 million strawberry plants to businesses across Germany and other European nations, with around 20 million plants expected to leave the Telgte facility in the coming weeks. The company employs roughly 80 permanent staff members, supplemented by about 600 seasonal workers each year.
KRAEGE's International Production Strategy
As reported by WDR, KRAEGE has shifted part of its production to Morocco, where wage costs are only about 20% of what they would be under Germany's minimum wage regulations. This significant cost disparity raises competitive concerns for domestic producers. However, it is crucial to note that KRAEGE has been growing certified mother plants in Morocco since 2019, cultivating them on open fields before transporting the seedlings back to Germany for further development into tray or waiting bed plants. The company cites earlier availability as a key advantage, as seedlings harvested in Morocco can be ready by mid-May, well ahead of the German growing season.
This situation is not merely a new shift in production but rather a reflection of the existing pressures within the agricultural industry. The recent statements from Telgte align with a broader alarm raised by the Federal Fruit Growing Association, which has addressed policymakers, trade partners, and consumers about the rising production and labor costs. The association has pointed out the absence of special regulations for labor-intensive crops, which complicates the ability of German producers to market their products effectively against cheaper imports.
The association's warnings highlight a concerning trend: the decline of domestic fruit farming in Germany. Currently, approximately 6,500 fruit farms exist in the country, with nearly 150 expected to close each year, resulting in a farm disappearing every two to three days on average. This decline is particularly pronounced in crops that require significant manual labor, such as strawberries, cherries, raspberries, and blueberries, where labor costs constitute a substantial portion of overall expenses.
In light of these challenges, the fruit farming sector is advocating for special regulations for seasonal workers. Reports indicate that the Federal Ministry of Agriculture has already examined the possibility of exemptions from the statutory minimum wage but concluded that the minimum wage applies universally, including to seasonal workers. While the CDU continues to support calls for such exemptions, parties like the SPD, Greens, and Left Party oppose these measures.
The KRAEGE case exemplifies the intricate economic and political discussions taking place in the Münsterland region. According to Staden, the company intends to continue its operations in North Rhine-Westphalia as long as it remains economically viable, but the production shift to Morocco signals a trend where labor-intensive processes may increasingly relocate to regions with lower costs. This situation represents more than just the fate of strawberry plants; it encompasses job security, economic value creation, and the future of agricultural enterprises in the area.
As reported by ms-aktuell.de.
