German dairies aim for export markets

The milk price situation in Germany is tense after the end of the EU quota. In early May, discount chains lowered the prices for milk again, so it was just €0.55 for a litre of UHT milk. In some cases the dairies can only pay a gross milk price below €0.31 to the farmers. Therefore dairies and farmers are now aiming for better export income.
“We can not solve the critical situation in the dairy market with the instruments of the agricultural policy of the past,” Joachim Rukwied, the president of the German Farmers’ Association (DBV) says. He rejects the constant calls for government intervention in production decisions for milk producers.
The political conflict between Russia and the EU has also affected the milk producers. The Russian embargo is responsible for a decline in producer prices for milk by up to 4 cents/kilo, in the opinion of some market experts
As the EU receives record payments from the super-levy after the last quota year, the DBV wants this money to be used for the dairy sector for an European export offensive. The gain in exports and improved market development in third countries are important elements in this connection. The DBV president thinks that there also is a need for action regarding marketing.
“Dairies, cooperatives and producer groups must do their part to improve the market position of the producers. Hereby must structures be developed, which within the competition possibilities can meet a concentrated buying power,” demands Rukwied.

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