A million ton increase in fresh dairy product sales

Were the EU dairy sector policies of production quotas, intervention and export aid the wrong tools for a successful milk industry? This is being asked by the German price and market reporting agency ZMP.

One reason is the current continued strong internal EU market with performance seen to increase in line with reduced EU controls of the market. The ZMP identifies the huge success of the cheese market, particularly in Germany, as one of the most powerful motors driving the sector. One result is that increasing tonnages of milk are now being processed into cheese. In 1995 33% of German milk deliveries to dairies left the plants in the form of cheese. Last year (2006) this proportion moved over the 40% mark for the first time, representing over 11 million tons of milk. Selling just as well in Germany, reports the ZMP, are fresh milk products such as milk drinks and yogurts. When pasteurised drinking milk sales are included, sales of these products have increased by just short of one million tons over the last 10 years, according to estimates including 2006 returns.
In comparison, production of the old dairy production stand-bys butter and milk powder is being throttled back strongly. In 1995 17% of all milk deliveries went into butter production and 10 years later this figure had dropped to 15%. Only 12% of deliveries went for powdered milk products in Germany 2005 compared with just over 20% 10 years before.