Crowded German dairy market to shrink

GERMANY – With over 100 milk processors in the dairy market, Germany has one of the most crowded sectors in Europe.

Neighbouring Holland has less than ten main processors, including two of the world’s largest multinational dairies, Friesland Coberco and Campina, while Denmark and Sweden are dominated by one international company, Arla Foods.

Of course, many of Germany’s processors are small concerns, but no less than 20 companies represent 77% of the country’s dairy turnover.

However, this is set to change, according to Nordmilch’s chief executive Stephan Tomat. At a conference staged by food magazine Lebensmittelpraxis, he said: “Within three years, but probably sooner, the German dairy industry will undergo the same process as the meat sector did, and foreign companies will be picking up the bargains.”