In a massive protest against one of the lowest-paying dairies in Germany, 130 milk producers will cease deliveries equalling 30 million kg per year to the southern German Allgouland Koserei during December.

Instead they have decided to supply a neighbouring processor, Omira from Ravensburg in Baden-Warttemberg.

The farmers have been receiving just over 19 eurocents a litre throughout the summer. In late November they cancelled contracts that were meant to run until 2011 and signed-up with Omira for a guaranteed three c/l more and a deal that will see Omira lawyers defending any farmers taken to court by Allgouland for premature ending of the delivery contracts.

Allgouland, one of Germany’s largest Alpine cheese producers, with 52,000 tonnes sold in 2008, plus 157,000 tonnes of fresh milk products, keeps a total of nine milk plants busy and last year had a turnover of €403 million.

Farmers claim that poor management of the dairy has led to their low prices. The processor they are moving to managed a €470m turnover in 2008 mainly from basic products such as long-life milk and milk powders. Omira is market leader in supply of low-lactose milk and milk products for Germany, particularly the Minus-L brand, with 10% of its turnover earned from this product.