Germany turns to exports for help

GERMANY – The dairy industry is relying on substantially increased exports in 2003 to boost stagnating incomes throughout the sector.

The forces mainly responsible for the domestic market disasters in 2002 are expected to help in the export campaign. Milchindustrieverband (MIV), the country’s milk association blames the falls on price cuts brought in by retailers and claims that the reductions led to an 8% reduction in dairy turnover in 2002.

MIV managing director Eberhard Hetzner has said that the same retail chains were now in a position to play a critical role in boosting sales by up to 1000% in Eastern Europe within five years.

Speaking at MIV’s annual general meeting, Hetzner said that the expected eastern export explosion in the EU accession countries will be greatly helped by the presence of the top German supermarket chains. These are already well established in Hungary, Poland and the Czech Republic.

He added that Mexico was also a good example of a fertile area for huge increases in foreign sales. “Latest news is that Mexico is to increase its milk powder import quota by over 50% to 43,000 tonnes in 2003 and we are expecting continued demand for milk powder from Southeast Asia and China,” said Hetzner.