Germany: A Dairy Powerhouse

Germany is renowned for its high production standards and diverse range of dairy products, playing a pivotal role in the international market. The dairy industry is critical to the national economy, significantly impacting both global exports and local consumption patterns.

Dairy Cattle and Milk Production

As of 2023, Germany boasts approximately 4 million head of dairy cattle. This substantial livestock base facilitates an annual production of around 32.2 billion liters of milk, highlighting the country\'s efficient farming techniques.

Milk Processing and Production

Germany processes about 31.8 billion liters of milk annually, underscoring the robustness of its dairy processing sector. The country is notable for its cheese production, with an output of around 2.4 million metric tons per year. Additionally, Germany produces approximately 1.5 million metric tons of milk powder and whey annually, catering to both domestic and international markets.

Major Dairy Enterprises in Germany

Key dairy plants in Germany include Molkerei Ammerland, DMK Deutsches Milchkontor, FrieslandCampina Germany, Nordmilch, and Lactalis Germany, including the newly acquired BMI Dairy Assets. Notable dairy farms include Wiesenhof Dairy Farm, Dairy GmbH Bauer, and Thuringian Dairy Farm.

Exports and Imports

Germany\'s export of dairy products reached approximately 4.8 billion euros last year, reinforcing its status as a substantial European exporter. On the other hand, imports of dairy products were about 3.2 billion euros, reflecting a balanced trade approach and significant local market demand.

Significant Events in the Dairy Market

Recent developments in the German dairy market include an increase in raw milk prices and the acquisition of BMI dairy assets by Lactalis, strengthening its influence in Germany. There is an increasing demand for curd snacks across various European countries, including Germany. Regulatory pressures are expected to influence livestock production processes due to reduced farm emissions mandates. Germany has also faced challenges such as outbreaks of BTV-3 and foot-and-mouth disease, impacting milk yields and trade. Nevertheless, Germany remains committed to organic farming with 1.8 million hectares allocated for organic produce. Additionally, strategic mergers and acquisitions, such as Arla\'s merger plans with DMK and Edeka\'s acquisition of Uckermärker Milch, highlight ongoing consolidation in the sector.

Arla Foods is set to resume normalcy at its German factory, which experienced a cyber breach that impacted production. The intrusion, described as \'suspicious activity,\' disrupted operations at their plant in Upahl, Germany. Sales in Germany reached €1.27bn in 2024, marking a 1.5% increase from the previous year, making it Arla\'s third-largest market behind the UK and Sweden.

Modified: 2025/05/18


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