Germany: A Dairy Powerhouse
Germany is recognized as a leading force in the international dairy market, characterized by its efficient production methods and a wide range of dairy offerings. The dairy industry is a cornerstone of Germany's economy, impacting both international exports and domestic consumption habits.
Dairy Cattle and Milk Production
In 2023, Germany maintained approximately 4 million head of dairy cattle, supporting an annual milk production of about 32.2 billion liters. Despite challenges such as adverse weather conditions and the bluetongue virus, there was a 2.6% increase in milk production.
Milk Processing and Production
Germany processes around 31.8 billion liters of milk annually, showcasing the strength of its dairy processing sector. The country is notably recognized 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, catering to both domestic needs and international markets.
Major Dairy Enterprises
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 in the country include Wiesenhof Dairy Farm, Dairy GmbH Bauer, and Thuringian Dairy Farm.
Exports and Imports
Germany's dairy exports reached approximately 4.8 billion euros last year, reinforcing its status as a major European exporter. Conversely, imports totaled about 3.2 billion euros. There was a 25% increase in UK dairy exports to Germany, amounting to £32 million.
Significant Events in the Dairy Market
Recent developments in the German dairy industry include a rise in raw milk prices and the acquisition of BMI dairy assets by Lactalis. 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 impacted milk yields and trade. Germany remains committed to organic farming, with 1.8 million hectares allocated for organic production.
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. 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.
Trade Fairs and Events
Germany is a leader in global cheese imports in 2024. The world's largest food trade event, Anuga, takes place in Cologne, Germany, where UK red meat and dairy exports were prominently featured. The EuroTier trade fair will be held in Hanover, focusing on smart technologies for efficient, sustainable, and animal-friendly livestock farming.
Innovation and Technology
German specialists participated in creating the dry mare's milk production project. Earlier this year, Danone announced the closure of a dairy production site in Ochsenfurt, Germany, affecting 230 jobs.
Climate and Environmental Initiatives
Edeka, a major German retailer, has launched a climate protection initiative in the dairy sector, focusing on reducing emissions in conventional milk supply chains. The DMK Group is investing €55 million to expand its dairy plant located in Edewecht, Germany.
Protest by European Dairy Farmers
On May 31, European dairy farmers will protest against the devaluation of milk by spraying it across a field in Germany, organized by the German Dairy Farmers' Association and the European Milk Board.
Industry Developments
Protein Works has approximately 3 million customers across several European markets, including Germany. The merger of Arla Foods and DMK Group enhances 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 emerged as the leading market for plant-based foods in Europe, with sales rising by 3% to €1.7 billion, representing 36% of sales in the six countries analyzed. Plant-based milk saw an 8% increase in sales, making up 9% of all milk sold in German supermarkets. In Germany, plant-based and animal-derived products have achieved price parity, leading to increased sales of plant-based foods.
Yfood, a prominent brand specializing in ready-to-drink meals, is based in Europe and reported significant sales growth.
Modified: 2026/06/18