Germany: A Dairy Powerhouse

In 2023, Germany reinforced its status as a leader in the dairy industry, with a dairy cattle population of approximately 4 million. This livestock base delivered an annual milk production of about 32.2 billion liters, marking a 2.6% increase despite challenges such as adverse weather conditions and outbreaks of the bluetongue virus.

Milk Processing and Production

Germany's dairy processing sector is remarkable, handling around 31.8 billion liters of milk annually. Known for its cheese production, Germany achieves an output of approximately 2.4 million metric tons each year. Additionally, the nation produces around 1.5 million metric tons of milk powder and whey annually.

Major Dairy Enterprises

Prominent companies in Germany's dairy industry include Molkerei Ammerland, DMK Deutsches Milchkontor, FrieslandCampina Germany, Nordmilch, and Lactalis Germany, which has expanded through the acquisition of BMI Dairy Assets. Notable dairy farms include Wiesenhof Dairy Farm, Dairy GmbH Bauer, and Thuringian Dairy Farm.

Exports and Imports

Germany's significant role as a major European exporter is underscored by dairy exports worth approximately 4.8 billion euros last year. Imports totaled about 3.2 billion euros, with UK dairy exports to Germany notably increasing by 25% to reach £32 million. Germany serves as a key source of imported cheese for Spain and supplies milk powder to Switzerland.

Significant Events in the Dairy Market

Recent developments in the market include a rise in raw milk prices and the acquisition of BMI dairy assets by Lactalis. Regulatory pressures are impacting livestock production with mandates to reduce farm emissions. Challenges such as outbreaks of BTV-3 and foot-and-mouth disease have affected milk yields and trade. Germany supports organic farming with 1.8 million hectares dedicated to organic production.

Market Conditions

Food prices in Germany have increased by 30% compared to 2021. In 2021, German farmers received only 21.7% of the retail price. The retail food market is dominated by four major retailers controlling 85% of the market. The merger between Arla and DMK could lead to control over up to 13% of the EU milk market.

Trade Fairs and Events

Germany hosts significant trade events like Anuga in Cologne, where UK red meat and dairy exports are prominently featured. The EuroTier trade fair in Hanover focuses on smart technologies for efficient, sustainable, and animal-friendly livestock farming.

Innovation and Technology

German specialists have contributed to the dry mare's milk production project. Earlier this year, Danone announced the closure of a dairy production site in Ochsenfurt, affecting 230 jobs. Additionally, GEA relocated its application and technology center to Sarstedt, incorporating three years of pilot projects and customer work.

Climate and Environmental Initiatives

Edeka launched a climate protection initiative in the dairy sector aimed at reducing emissions in conventional milk supply chains. The DMK Group has invested €55 million to expand its dairy plant in Edewecht.

Industry Developments

Protein Works serves approximately 3 million customers across several European markets, including Germany. The merger of Arla Foods and DMK Group is expected to enhance market access and operational synergies. DMK increased its base price by 2 euros in line with its integration with Arla Foods.

Plant-Based Market Growth

Germany has become the leading market for plant-based foods in Europe, with sales rising by 3% to €1.7 billion, accounting for 36% of sales in the six countries analyzed. Plant-based milk saw an 8% increase in sales, representing 9% of all milk sold in German supermarkets.

Future Prospects

Lactalis is expanding its German dairy plant, with plans to increase processing capacities to 40,000 metric tonnes of quark and 104,000 metric tonnes of whey by 2030, creating approximately 70 new jobs. The Bavarian facility will transition to a continuous, round-the-clock operation. Moreover, Ehrmann and Glow25 are collaborating to introduce a new line of ready-to-drink coffees with 15g of bovine collagen per bottle. EuroTier 2026 will be held in Hanover from November 10 to 13, under the guiding theme 'Intelligence in Animal Farming.'

Ice Cream Production

Germany was the largest ice cream producer in the EU in 2025, producing a total of 608 million liters of ice cream. The country contributed significantly to the expansion of EU dairy exports outside the EU. German milk collections rose by 6.4% to 20.16 million tonnes, with major volumes of skimmed milk powder supplied to non-EU markets.

Trade and Economic Relations

Germany participated through its federal ministry and 12 companies. Martina Englhardt-Kopf, Parliamentary State Secretary at Germany’s Federal Ministry of Agriculture, Food and Regional Identity, highlighted the India-EU Free Trade Agreement which could improve market access and trade cooperation.

Industry Challenges

Germany recorded one of the largest reductions in EU cattle slaughter, linked to tighter supplies and decisions by farmers to keep animals for longer. The largest declines were reported in Germany: Hochwald was down 28.9% and DMK was down 25.2%. Hochwald and DMK, German dairy companies, experienced significant year-on-year price declines.

Corporate Developments

Müller will close two German processing sites by 2027, affecting about 320 employees, with approximately 160 at each site. Economic assessments found no durable commercial prospects for either operation.

Partnerships

One of the initial markets for Nestlé's partnership with the NBA. Nestlé's brands Milo, Nescau, and Nesquik will be official NBA partners in Germany. Cheese exports to Germany increased by 600 tonnes, with the largest increases in cheese exports going to European Union markets, including Germany. FrieslandCampina is shifting part of its milk-collection fleet to compressed biomethane. At the Barver Landmilch dairy farm in Lower Saxony, Germany, the operation includes on-site bio-CNG production and a dedicated refuelling station.

Regulations

Germany has specific terminology for kefir products. German rules distinguish between traditional Kefir and Kefir mild, with different provisions for each.

Health and Safety

Type 1 of Shamonda virus has been reported mainly in southern Germany. Type 2 had previously been identified in northern Germany.

Events and Sponsorships

The German Agricultural Society (DLG) is sponsoring the programme. The DLG has developed the content for the Anuga FoodTec programme, which includes various sessions and activities related to food and beverage industries. Attempts to target similar systems were reported in Germany. The report mentioned attempts to target refrigeration networks similar to those affected in France.

Origin of Gelbvieh Cattle

The Silver Stabilizer genetics combine Simmental, Red Angus, and Gelbvieh genetics with Charolais. Gelbvieh originated in Germany and is mainly used for beef production.

Germany’s dairy market includes six major groups distinguished by production capacity, financial scale and access to retail and export markets. Germany’s dairy industry combines farmer-owned cooperatives, family businesses, branded manufacturers and export-focused processors. The companies serve different parts of the market, balancing consumer products with cheese, powders, butter and industrial ingredients.