Record cheese consumption in Germany

GERMANY – The German dairy industry has cause to celebrate after cheese consumption grew yet again in 2004.

According to market pricing agency ZMP, final figures for 2004 should show per capita cheese consumption at more than 22 kilograms. Continued price pressure in 2004 discount retailers such as Lidl and Aldi kept prices below 2003 levels, despite threats of a shortage of cheese for the German market. The increased popularity of whey drinks has boosted returns for cheesemakers in Germany.

ZMP also reports a continuing sharp decline in production of dairy commodities in 2004. Butter was down 7,000 tonnes on the year to 445,000 tonnes and skim milk powder production was slashed by around 25% to around 230,000 tonnes. Whey powder production reached a record high in 2004 at just under 300,000 tonnes, while condensed milk production went down by 9% over the previous year to 450,000 tonnes.

Cheese exports also by more than 6% in 2004 and more drinking milk and fresh milk products such as yogurt were shipped abroad including a growing proportion to the new EU member states. For the first nine months of 2004, cheese exports hit 530,000 tonnes while overall production for the year is expected to pass the two million tonne mark.

For this year, German market experts are predicting a stable market, with prices firming well into the year. However, a cloud has already been identified on the horizon by ZMP. Countries where milk products can be produced substantially cheaper than in Europe, such as New Zealand and Australia, could put considerable pressure on world prices in the second half of the year.