Speaking as an Austrian, German groceries are absurdly cheap in north Germany and still cheaper in the south than in the surrounding countries. The store chains say that it’s because Germany is such a big market that they can offer anything cheaper.
It is also because of predatory business praxis. A typically thing for Aldi & co. to do is making good contracts with farmers, make them invest in an expansion, and then renegotiate the prices at a point the farmers are operate without any profit or even at loss. But since they have expanded, they can only deal with the supermarkets, who are able to buy these quantities.
Probably we just pay the hidden price through farming subsidies.
Speaking as an Austrian, German groceries are absurdly cheap in north Germany and still cheaper in the south than in the surrounding countries. The store chains say that it’s because Germany is such a big market that they can offer anything cheaper.
It is also because of predatory business praxis. A typically thing for Aldi & co. to do is making good contracts with farmers, make them invest in an expansion, and then renegotiate the prices at a point the farmers are operate without any profit or even at loss. But since they have expanded, they can only deal with the supermarkets, who are able to buy these quantities.
Probably we just pay the hidden price through farming subsidies.