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German dairy looks back on 9 good months
The German Milk Industry Association (MIV) looks back on a good first nine months of 2025, with a slight increase in milk supply, but also with a near-record high milk price for farmers. While dairy prices on the global market are falling, the MIV is reluctant to comment on this in its official announcement.
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According to chairman Detlev Latka, who is also CEO of the Hochwald cooperative, the market is changing. He is concerned about the falling butter price, particularly due to imports from outside the EU. He also notes that the cheese market currently feels weak. However, he is not yet mentioning any major problems in the market.
Surprisingly good
According to the MIV (Mediterranean Institute for Food Safety), the dairy farming and dairy industry in Germany performed surprisingly well in the first nine months of this year, particularly with cheese and butter sales. Cheese consumption in Germany also rose to a record 25,4 kilograms per person. Butter consumption is under slight pressure, falling to 5,5 kilograms, but this is partly due to high prices, the MIV suspects.
The Milchindustrieverband isn't particularly concerned about competition from plant-based products. While sales of plant-based drinks and yogurts have increased, plant-based cheese alternatives are not doing well at all. Sales of these are declining.
High milk price
German dairy farmers have received a high average milk price of €53 per 100 kilos through July. This is only 20 cents below the average for the record year 2022. The average organic milk price over the first nine months is €66 per 100 kilos. This year's milk price is still only a preliminary figure. Total milk production this year is expected to be higher than in 2024, which was suppressed in the second half of the year by bluetongue. This animal disease is not an issue now, and certainly not in the second half of this year.
Since August, milk production has actually increased significantly compared to last year, having already increased by around 1.8% over the first nine months. This higher milk production is due to a smaller dairy herd than last year. The number of cows has decreased by 2,5%. Furthermore, the number of dairy farms in Germany has fallen below 48.000. This increase in scale continues.
Dairy exports, which are important for growing milk production, are expected to decline slightly this year and are estimated to be worth €11,8 billion.