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German Taste for Budget Food Worries German Food Industry
But for Germans, food is fuel. They eat to live, not the other way around, with one in two shoppers getting two-thirds of what they eat by stuffing their trolleys in no-frills discounters, much more than many other Europeans.
The flip side of this phenomenon is that Germany's food industry is being squeezed hard, and if comments at the world's largest agricultural fair in Berlin are anything to go by, many are up to their necks.
At the "Gruene Woche" ("Green Week") fair in Berlin, which attracts 400,000 visitors annually and which wrapped up Sunday, the talk was of a battle for survival as the discounters wage an aggressive price war.
The five main discount supermarkets (Aldi, Lidl, Netto, Penny and Norma), which together account for 70 percent of Germany's retail food market, have launched 13 price-cutting bonanzas across their range since January 2009.
The head of the federation representing the German food industry, Peter Feller, said his members were suffering from the enormous purchasing power that the no-frills sector is able to bring to bear.
"99.9 percent of our members are small and medium-sized businesses. They are the ones who pick up the bill," he told AFP on the sidelines of the fair.
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