The development of German organic dairy farming is on track. To meet the growing consumption, imports from Austria, the Netherlands and especially Denmark are still necessary. This is especially true for butterfat.
In the German states of Baden-Württemberg and Bavaria, two thirds of all organic milk is produced in Germany. The annual organic milk pool in Germany has doubled to more than 10 billion in 1 years. Last year the limit of 10% organic agricultural area of the total was reached.
No more rapid growth offer
Nevertheless, the share of the more than 1 billion liters of organic German milk is less than 5% of the total German milk production. While the consumption of organic milk in Germany increased to over 14% of the total last year. In addition, 1 in 6 liters of organically produced milk is exported (processed), mainly to Asian countries.
Last year, the growth of the organic milk quantity, at 6%, clearly lagged behind the previous years. In the years 2017 and 2018 there was a total increase of 323 million kilos, with growth rates of no less than 18 and 19%. These extra milk quantities could nevertheless be marketed well by the dairies. The milk price has been fairly stable for several years, just under 50 cents. Limited growth in milk quantity is also expected for 2020, which is more in line with the growth in 2019 than with the rapid growth in 2017 and 2018.
Lack of butterfat
The heat in the summers of 2018 and 2019 and the resulting shortage of roughage resulted in a lower fat content in the milk. Given the course of the summer so far, the picture is not much better this year, although in southern Germany, where by far the most organic dairy is produced, there is much more rain than in the arid north and especially eastern Germany. In the organic sector in particular, there is a lot of demand for products with a high milk fat content. In 2019, 150% more organic butterfat was imported from Denmark.
The main processors of organic milk in Germany are Allgäu Milch Käse eg, Andechser Molkerei Scheitz, Bayerische Milchindustrie, Gläserne Molkerei and Molkerei Berchtesgadener Land. They process between 85 and 120 million organic milk per year.
Retail price of organic milk under pressure
At the top of the list of most consumed organic dairy products in Germany is UHT milk. 1 in 5 bottles of fresh milk sold carries an organic label. The selling price of organic milk in the store is under pressure. However, the amount rose to more than 14% of the total milk consumed in Germany in 2019. Only flour for bread-making and eggs reached higher market shares in Germany in 2019, of more than 20%.
In cheese, supermarket chain LIDL realizes the largest growth with the Bioland label. Far less than half of all organic cheese in 2019 was sold in the supermarket. However, the largest part is actually produced in Germany.
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