The Central Association of the German Poultry Industry (ZDG) has rejected a plan outlined by the government to increase VAT on meat products.
The funds raised by the proposed tax increase will be used to restructure livestock farming.
The president of ZDG, Friedrich-Otto Ripke believes that earmarking funds collected in this way is "legally impossible" in present circumstances.
He also appealed to the federal government for "an honest debate" about the future of livestock farming.
Ripke explained, "Federal minister of agriculture Cem Özdemir must honestly admit: A VAT increase affects all meat buyers, but would currently only benefit pig farmers in terms of funding.
"Long-term and legally secure financing of the restructuring of the entire livestock farming system is therefore not feasible - especially since half of the VAT revenues are allocated to the municipalities under budget law and the Bundestag has to approve the federal budget every year."
Challenges
Ripke added that animal farmers have no guarantee that funding made possible in this way would continue to flow over the long term, over 10 years or more.
Moreover, the tax-financed restructuring of livestock farming will also impact the prices of meat products.
Other EU member states are reducing taxes to ensure that food does not become more expensive, the association noted.
'The federal government is on the wrong track if it only wants to provide state support for meat from the high-quality 'free-range and organic' farming system,' it stated and added that such products only have a market share of under 10%.
Elsewhere, the United Nations world food price index held steady in June, data showed, with increases in vegetable oil, sugar and dairy products offset by a fall in the price of cereals.
