Germany: A Dairy Powerhouse
Germany stands as a pivotal player in the global dairy industry, thanks to its robust production standards and a wide array of dairy products. The sector is integral to the national economy, impacting global exports and local consumption patterns significantly.
Dairy Cattle and Milk Production
As of 2023, Germany maintains approximately 4 million head of dairy cattle. This substantial livestock supports an annual milk production of about 32.2 billion liters, underscoring the country's efficient farming techniques.
Milk Processing and Production
Germany processes approximately 31.8 billion liters of milk annually, highlighting the strength of its dairy processing sector. The nation is particularly noted for its cheese production, achieving an output of around 2.4 million metric tons per year. Additionally, Germany produces about 1.5 million metric tons of milk powder and whey annually, serving both domestic needs and international markets.
Major Dairy Enterprises in Germany
Key players in Germany's dairy industry include Molkerei Ammerland, DMK Deutsches Milchkontor, FrieslandCampina Germany, Nordmilch, and Lactalis Germany, which recently expanded its influence by acquiring BMI Dairy Assets. Prominent dairy farms include Wiesenhof Dairy Farm, Dairy GmbH Bauer, and Thuringian Dairy Farm.
Exports and Imports
The export of dairy products from Germany reached approximately 4.8 billion euros last year, reinforcing its status as a major European exporter. Conversely, imports totaled 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 a rise in raw milk prices and the acquisition of BMI dairy assets by Lactalis, which has strengthened its market presence. There is an increasing demand for curd snacks across Europe, including Germany. Regulatory pressures are influencing livestock production processes due to mandates to reduce farm emissions. Challenges such as outbreaks of BTV-3 and foot-and-mouth disease have affected milk yields and trade. Nevertheless, Germany remains committed to organic farming, with 1.8 million hectares allocated for organic production.
Strategic mergers and acquisitions are reshaping the market. Arla's merger plans with DMK and Edeka's acquisition of Uckermärker Milch highlight ongoing consolidation in the sector. Arla Foods is set to return to normal operations at its German factory after a cyber breach disrupted production. The incident, described as "suspicious activity," affected their plant in Upahl, Germany.
Market Conditions
In terms of market conditions, food prices in Germany have risen by 30% compared to 2021. German farmers received only 21.7% of the retail price in 2021, highlighting market challenges. Four major retailers control 85% of the retail food market, and the merger between Arla and DMK could control up to 13% of the EU milk market. Despite farmer protests, political responses have been limited. Future expansion targets include the German market, with Amul planning to enter as part of its European strategy.
Germany's dairy market faces challenges, including a decrease in milk production by over 1.2% compared to the previous year, influenced by adverse weather and the bluetongue virus. Arla's growth plans through a merger with Germany's DMK Group will create Europe's largest dairy cooperative. Germany's regained export status has also affected meat prices, which have increased.
The agricultural sector is experiencing a downturn, with CLAAS cutting 1,000 jobs amid declining demand for agricultural machinery. The Inhouse Farming – Feed & Food Convention 2025 is scheduled to take place at the Congress Center Hamburg on 30 September and 1 October 2025.
Germany reported declines exceeding 2% in milk production. This decline mirrors trends seen in other European countries, including the Netherlands and Spain. The decline in profitability is affecting the production structure, mirroring a trend in Europe where Germany reported declines exceeding 2%.
Bavaria, a region in Germany, is involved in the dairy industry discussions. Bavarian experts shared their experiences and best practices in the dairy industry, offering valuable insights for Latin American SMEs.
Modified: 2025/07/25