GERMANY – Milk industry bosses appear to have given up the fight against the country’s discount retailers, conceding that there is no way they can force them to raise milk prices.

Speakers at a major dairy congress last week in Bonn seemed resigned to the fact that they will have to accept low price policies, which will mean a period of rationalisation throughout the sector. Expansion will be left to the lucky few who have high-profile products selling well without the support of the discounters.

“After three months of intensive negotiations we have failed in our efforts to force higher prices,” admitted Rolf Janshen, chairman of the German Milk Industry Association and director of Humana Milchunion. Humana is the third-largest dedicated milk processor in the country, with a turnover in the last financial year up 13% to