German milk supply continues to develop rather weakly

German milk production has not once positively surprised since it started to tighten in June last year. Although the contraction in February 2022 was modest, it must be taken into account that milk production in February 2021 was very small due to a significant period of cold weather in the first half of the month.

Modest min
German livestock farmers delivered 2.484.120 tons of milk to processing companies in February. That was about 14.000 tons less than in February 2021, when milk production was about 150.000 tons lower than in February 2020 (leap year). The percentage shrinkage compared to the cold month of February 2021 is approximately 0,5%. 

The fat and protein contents in the milk were also at a low level during the first two months. The fat content for January and February was 4,17% (2021: 4,25%). The protein content in these months is 2022% so far in 3,46 (2021: 3,52%)

Dairyers continue to search in a tight market
Dairy traders from Germany still feel that the dairy market is undersupplied. Although there was a small drop in demand for spot milk before Easter, due to smaller processing capacity around the holidays, this appears to have been a temporary dip. Last week, the price for spot milk picked up again in both Northern and Southern Germany.