German worries over low prices

Because of the sales problems due to the Russian embargo on agricultural products and the recently weakened demand in growing markets such as in China, the milk price situation in Germany after the expiry of the milk quota is still tense.

In early May the discount chains lowered prices for milk to just €0.55 for a litre of UHT milk. For some farmers, this means a gross milk payment price below €0.31.

To better understand the situation, a delegation from the Bavarian Farmers’ Association (BBV) has visited Berchtesgaden dairy, which process milk from the mountain region.

Bernhard Pointner, managing director of Berchtesgaden dairy, described his concern to the Bavarian Farmers’ Association representatives:

“In a time, when the price competition between Aldi and Lidl is a threat to all the milk industry and especially to the Bavarian dairy farmer’s existence, we need your support. Our premium milk cannot be sold to discount price. The work of farmers in grassland belt of the Alps is much more complex compared to farmers in the lowlands. This power must be rewarded with a decent, existence assuring milk price.”

For the approximately 1,750 dairy farmers in the region grass is the staple food for the cows and there is an increase in using homeopathic remedies to minimise antibiotic use.