German dairy without gas flat within 3 days

"Gas is of existential importance for processing, cooling, heating and storing dairy products," Stahl said last Friday (April 8). For this reason, the MIV already contacted politicians in mid-March to give priority to finding an alternative to Russian gas if the tap were to be closed completely. 

Clamp with retail contracts
Gas is not the only problem for the German dairy industry. The high prices on the dairy market also make it difficult for many companies. Especially those companies that make products with extra added value. They cannot pay the high milk prices that reflect the current price level in the market and that producers of simple bulk products make, such as butter and skimmed milk powder. The added value producers are often trapped by long-term retail contracts that have not or only little moved with the market, while they have to pay dairy farmers a competitive and necessarily higher milk price. As a result, they are often under significant financial pressure, says Stahl.

Vlog connection is bothersome
A third problem, which is caused by the war in Ukraine, is the availability of Vlog-worthy raw materials. A large part of these raw materials must come from Ukraine, but are currently not available. The MIV would therefore like to temporarily adjust requirements, but the Vlog organization does not want to cooperate in this. According to Stahl, this could put the entire Vlog chain at risk.