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Falling prices and concerns about German dairy margins
German milk prices follow the market and are going down this year. This will not bode well for the German dairy industry, after a difficult 2022. Livestock farmers will then have received record milk prices, many German processors will have ended up in the red.
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This reports the German Milchindustrie Verband (MIV). The sister organization of the Dutch NZO therefore looks forward to the new year positively, but also with some concern, says chairman Peter Stahl.
German dairy processed 32 billion kilos of milk last year, almost as much as in the previous year (2021). On average, a milk price of €53 per 100 kilos was paid throughout the year, according to preliminary figures from the German ZMB. This is at 4% fat and 3,4% protein. With the higher Dutch standard contents, this would also mean a higher price per kilo.
However, the sharply declining dairy market and the same raw material price for dairy are worrying the industry. The research institute IfE in Kiel calculated a raw material price of just €48 per 100 kilos for December. The high prices for energy, transport and packaging materials, among other things, also worry the industry. Margins are under heavy pressure, the MIV indicates.