The German milk price this year will be at a comparable level to last year. This with a flat milk supply. Chairman Peter Stahl of the Milchindustrie Verband (MIV) expressed this expectation in his New Year's speech at the Grüne Woche.
Last year, the German dairy industry paid an average milk price of €45,50 per 100 kilos, albeit at lower levels than in the Netherlands. That was, just like in the Netherlands, considerably lower than the price in 2022, but still the second highest in recent decades.
Stahl makes his statements bluntly, because the markets are quite volatile and therefore unpredictable. Still, he expects a high milk price again, because stocks of dairy products are limited. While there is a strong demand for all kinds of dairy products from various regions in the world where domestic production is inadequate.
The dairy industry itself thinks 2024 will be an exciting year, because the costs for all kinds of raw materials, energy and services are also rising rapidly, while the unions want more wages. Stahl warns the latter not to demand too much, because the industry cannot handle that, he says.
Cheese is king
Just like in the Netherlands, cheese was the dairy product with the strongest growth. In Germany, production increased by 71.000 tons to a total of 1,183 million tons. The MIV no longer seems to be so concerned about dairy alternatives. Chairman Peter Stahl believes that these products, including the latest generation 'from the petri dish', will mainly remain niche products.
More administration, less production
Finally, the MIV expresses solidarity with 'the peacefully protesting farmers' in Germany. The trade association believes that the government imposes too many burdens on farmers, burdens that unfairly restrict farmers in their business operations and bureaucratic burdens that cause more administration and less productivity. Stahl also called on German consumers to choose their 'own' product more often.