German dairy farmers lack understanding of their position

This was partly in response to the recent German (and European) farmer protests and the complaints from many farmers that they cannot make ends meet with the current milk price, even though according to the industry and retail it is not bad at all. 

Fairer and more transparent trade
Dairy farmers are therefore pushing for a higher milk price. Some of them want to do this with the help of new legislation that should make price formation more transparent and prohibit 'unfair trade practices'. European regulations provide starting points for this and there is already legislation based on this in France and Spain. Elmar Hannen, vice-chairman of the European Milk Board (EMB), urged similar German legislation in the discussion. Politically, this seems promising, although there are doubts about the effectiveness of such legislation. MIV chairman Peter Stahl sees no point in it. He received support from others, including from retail and research.

Rewe
Emilie Bourgoin, director of corporate affairs at Rewe, pointed out that only 30% of German milk ends up in retail. The rest goes to the food industry or export. Rewe does want to achieve 'a milk price that everyone can earn something from', she said. A researcher from the Thünen (agricultural) institute also argued that the cost price of German dairy farms varies between 23 and 50 cents per kilo of milk. Which company needs support?

Tight margins
On average, however, German dairy farms are not in an easy position. A cent more or less milk money, or costs, can make a whole world of difference for many companies. That is why many farmers reacted so strongly to the higher diesel excise duty at the end of last year.
That is why many farmers are looking for other buyers who pay better. In the German Münsterland and Westphalia, hundreds of dairy farmers have canceled their membership with DMK and related companies, according to media reports. In total, this would amount to approximately one billion kilos of milk. The farmers have to wait another year before they can leave. Many of them do not want to simply switch.

Dairy farmers set up MEGs
There are at least 4 new supplier associations (Milcherzeuger Genossenschaften - MEGs) being formed in Münsterland alone. These should help farmers negotiate a better milk price.
However, according to farmers and their representatives, this is not the only thing that should and can help. Governments must better understand the situation in which farmers have to do business. A representative of the European Commission stated that they have enough data about dairy farming to be able to make good policy. This was politely but clearly contradicted.

Lack of current and broad insight
Not only current data is missing, but also relevant data, such as the costs of all kinds of new regulations and insight into the interest effect on loans. In various respects, Germany still lags behind the Netherlands, but the pressure of all kinds of new demands is also being felt there.

Need practical help
Also notable was the agreement of the Minister of Agriculture of North Rhine-Westphalia Silke Gorissen with the farmers' grievances. "Let's see what we can practically do to improve the lives of our dairy farmers, and not, like in Berlin and Brussels, talk to everyone who thinks something, but often has nothing to do with agriculture." The minister is a lawyer by training, but also lives on a farm.