German cheese: More sales but further price squeeze expected

Posted 9 December, 2005
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Could 2006 bring yet another bonanza year for cheese production and consumption in the German market? Yes, reckons the country’s central price and marketing agency ZMP in its annual review of the national food and drink market.

With 2005 cheese consumption up an estimated 4% on the year to around 22.8 kg per head, ZMP (central price and market reporting agency) managing director Dr Klaus Siegmund reckons a small increase could be expected next year as well, with a similar surge in sales of yoghurts and milk drinks.
This will be encouraged by stagnant or even lower prices, mainly through the still growing price pressure from discounters in Germany, it was thought. By September 2005, retail market share for these outlets had increased by 2.2% from January meaning they now control a little over 38% of food sales. Typical of the price battles and ensuing price reductions is the case of butter in the past months with average retail price spiralling downwards from

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