Organic Market Grows: Why German Farms Are Lagging Behind

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Organic food is in greater demand when people shop, but organic farming is making only slow progress in German fields. This counter-movement has a specific cause: Sales are growing while farms are being closed down or returning to conventional farming. Handelsblatt explains how demand, land development and the role of importers are connected.

The figures are clear: In the first nine months of this year, sales of organic products rose by 4.3 percent to €14.08 billion. In the third quarter of 2026, organic products’ share of the food market reached a record high of 8.1 percent. Tina Andres, head of the German Organic Food Industry Association, described the market growth as a “wake-up call”.

On the production side, however, the picture is more subdued. Last year, 11.4 percent of all agricultural land was farmed organically. The area grew slightly to around 1.9 million hectares. At the same time, the number of organic farms dipped slightly to 28,150. That equals 11.2 percent of all farms.

More Organic Land, but Fewer Organic Farms

The new statistics show a structural change. Fewer farms cultivate larger areas on average. This means the organic area can increase while the number of farms declines. Because the total number of farms also fell, the share of organic farms among all farms remained stable at 11.2 percent.

The current figures, however, cannot be directly compared with earlier publications. Since this year, the Federal Ministry of Agriculture has used only data collected by the Federal Statistical Office. As a result, the same registration thresholds now apply to organic and conventional farms. Previously, very small organic farms cultivating less than five hectares had also been included.

The ministry also pointed out that, for methodological reasons, the share of land is slightly lower under the new calculation. Under the old criteria, the organic share of agricultural land was 11.5 percent in 2024. The new survey for last year puts the figure at 11.4 percent. The development can therefore only be compared to earlier figures to a limited extent.

The conversion target remains a long way off. The traffic-light coalition had aimed for a land share of 30 percent by 2030. The currently reported 11.4 percent is a considerably lower figure.

Why Farms Are Switching Back or Giving Up

The transition is continuing—just not permanently at every farm. The Ministry of Agriculture said farmers are still converting to organic production. At the same time, organic farms are being closed down because there is no successor or because farms want to operate conventionally again. The difference between growing land area and falling farm numbers is therefore not merely a statistical effect.

The economics are decisive for many farms. On organic farms, mechanical soil cultivation using tractors and machinery requires more effort, resulting in higher diesel costs. At the same time, chemical-synthetic fertilizers and pesticides are prohibited in organic farming. Because of the Iran war, these products have also become more expensive. Conversion is therefore a cost question, with higher diesel costs on one side and a lack of chemical products on the other.

For an existing organic farm, this does not automatically mean that a return to conventional farming makes sense. However, the sources cite two specific reasons for closure: the lack of a successor and the desire to farm conventionally again. At the same time, the continuing conversion shows that demand for organic products is not being met by imports alone.

The Market Is Growing Faster Than Domestic Production

Demand now has a boost behind it. According to the industry association, sales of organic products, which generally cost a little more, have risen continuously since 2022. At the time, high inflation briefly slowed the market. Since then, demand has driven revenue increases: €14.08 billion in the first nine months of this year and a record share of 8.1 percent of the food market in the third quarter of 2026.

For domestic farms, this demand is an opportunity. If German farms do not expand their organic production more strongly, importers could benefit more. However, the open profit question raised by Handelsblatt cannot be answered with the available data: the revenues, margins or profits of individual importers are not stated.

Political pressure is therefore being directed at the federal government. It is supposed to create good conditions for “domestic organic” products and encourage farms to convert. The demand is understandable because demand for regionally produced organic food continues to rise while the domestic production base is under pressure.

Organic Remains a Niche Despite Its Record Share

The record high of 8.1 percent does not end the debate over the market significance of organic food. Foodwatch managing director Chris Methmann warned against an overly optimistic interpretation: “Organic remains a niche.” In his assessment, the consumer organization also considers high food prices, under which organic food does not automatically become a mass-market product.

Foodwatch is therefore calling for a more comprehensive change in agriculture. This includes a halving of livestock numbers to achieve climate and environmental targets, as well as an end to the use of pesticides. These demands go far beyond the market question. They place organic food within the broader debate about how agriculture should change.

For the immediate market decision, the situation remains clear: €14.08 billion in sales over nine months stand alongside 28,150 organic farms and 1.9 million hectares. Demand is growing. The organic area is increasing slightly. At the same time, the number of farms is falling, and conversion to organic farming depends for individual operations on higher diesel costs, the absence of synthetic products and the question of succession.

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