Forum asks, who makes the rules?

“The Market of Tomorrow – Who Makes the Rules?” This question was discussed by the 120 participants at the Forum Milch NRW, organized by the association of the dairy industry of North Rhine-Westphalia in Germany.

The critical sociopolitical discourse is becoming more and more multifaceted, according to Hans Stöcker, chairman of Rhein Milch NRW. Thus, all market participants would have to decide their own interest as to how the dairy industry of tomorrow is developing. He called on industry representatives to ask questions, to shape the dialogue more closely and to face the challenges.

State Secretary Heinrich Bottermann says the state government of North Rhine-Westphalia is pursuing the goal of organising livestock farming on the basis of scientific knowledge and increasing dialogue with animal owners for the future. An important factor for the economic success is the acceptance by consumers, which should be further improved, he says.

CEO of Arla Foods Deutschland Winfried Meier sees the need for fair and sustainable rules along the entire value chain for tomorrow’s market. This would also require a more balanced relationship between trade and industry. For him, a constructive dialogue on a long-term partnership, which results in a win-win situation, is at the forefront.

He notes that the dairy market is becoming increasingly global. It is clear that developments in China and Russia will have a massive impact on milk prices in Germany. Global impacts that shape the imbalance between milk supply and demand will certainly be even greater. Last but not least, consumers will have a strong influence on developments in the industry, Meier states.

Government director for the Federal Cartel Office, Uli Barth, sees the dairy market as being in an exciting phase, as the new orientation from a regulated market to a market organised in a market economy takes place.

“Market participants in the dairy market have the opportunity to take charge of their own destiny and to determine the rules. However, they are so far using their possibilities insufficiently. The time of the quotas regime belongs to the past,” he points out.

For Peter Manderfeld, chairman of the board at Hochwald Milch, the rules for the market of tomorrow must be developed by the producer. “If we want farmers to actively shape the dairy market in the future, we need strong cooperatives to create the rules for the dairy market of the future in our interest.” If this is not possible, Manderfeld thinks that it will mean a massive loss of influence for dairy farmers.

Enrico Krien, analytic consulting manager of The Nielsen Company (Germany), sees the ‘White Line’ facing major challenges.

“Germans consume less now – milk, fruit yogurt and desserts are clearly under pressure,” he states. Trendy segments and alternatives such as protein, organic and lactose-free continue to provide strong impulse purchase nudges to consumers, he adds.