BMG bankrupt
German milk processor stops milk collection
Milk has not been collected from a group of dairy farmers from Germany since Wednesday. Among them are conventional and organic livestock farmers. The Berliner Milcheinfuhr Gesellschaft (BMG) turned out to be beyond saving, because banks have lost confidence.
In the first week of March, BMG found itself in heavy weather. Friday 9 March filed for bankruptcy† On Tuesday, March 13, banks withdrew their confidence. As a result, the milk will no longer be collected from Wednesday 14 March. It concerns dairy farmers with both conventional and organic farms.
On Friday, the German representative for dairy farmers expressed the hope that previously concluded contracts would continue. Also because in certain federal states it would weaken the position of dairy farmers, because only few processors are left to supply the milk.
Uncertainty reigns
What will happen next is uncertain. It will also be exciting whether the bankruptcy of BMG will not cause a chain reaction. What is certain is that the current developments (in the run-up to the peak in milk supply) are absolutely unwelcome. The market indicates that BMG represents about 950 million kilos of milk.
Herman van den Pol
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