Berchtesgaden Land updates farmers
German dairy Berchtesgaden Land had a traditional gathering where 739 female farmers from the milk delivery area were updated about the situation of the Bavarian dairy over the past year.
“2015 will be a very special year in the history of the whole milk industry, but in particular in our dairy,” Bernhard Pointner, managing director of Berchtesgaden Land, told the farmers. The dairy has consistently invested in recent years in logistics, production capacities and opening new markets at home and abroad, so the CEO says the dairy is very well prepared for the expected increase in milk deliveries after the quota removal.
After two very good years in which the price of milk was continuously high, the market is now declining significantly. Berchtesgaden Land will do all possible means to combat the decline, because milk production in the mountain region is only possible with considerably higher costs than milk production in north or even East Germany and in many other regions of the world, he notes.
“Therefore we will, if necessary, reset planned investments in the dairy. As a small dairy farm with less than 1% of the market share in Germany, we only have a chance if we pursue our business philosophy of making the absolute premium quality from the Alp’s grassland belt sustainable and long term.
“This will only be achieved if the small family farms remain part of milk production. Therefore Berchtesgaden Land currently pay five euro cents more than the comparison dairies – even 10 cents more than the worst paid dairies. This is an expenditure of several million euros for the dairy,” Pointner states.
According to market research, if customers are sure that fair prices are paid to producers, they are willing to pay a slightly higher price for quality dairy products with real guarantee of origin, marketing project manager Veronika Pletschacher says, presenting the planned marketing activities for 2015 at the meeting.
The farmers themselves will be brand ambassadors for fair milk prices, she notes. Thus mountain farmers from Berchtesgaden, Schönau and Weissbach will transmit the messages on packages, in radio spots and brochures, so the customers know that Berchtesgaden Land pays a fair price for the milk.