German wine producers are expressing increasing concern over the viability of cultivating vineyards in steep-slope regions following the planned increase in the national minimum wage. Matthias Dempfle, Deputy Managing Director of the German Winegrowers’ Association (DWV), cautioned that a significant reduction in cultivated area is now a distinct possibility, particularly within these challenging terrains.
Concerns surrounding potential land abandonment predate the recent decision by the minimum wage commission to raise the rate to €14.60 by 2027. DWV officials now believe the mandated wage increase will accelerate the trend.
The combination of declining sales figures, a decrease in the price of bottled wine and sharply rising production costs is already creating a difficult economic climate for German winemakers. Dempfle emphasized that the current financial strain makes it challenging to absorb the additional labor costs without risking business closures or job losses within the sector.
Despite the pressures facing producers, consumers are not expected to see immediate price changes. DWV representatives explain that German wine businesses face intensified competition due to significantly lower minimum wage levels in European and extra-European markets. This competitive environment restricts the ability of producers to pass on rising labor costs to retailers, processing companies, or the consumer base.