Germany: A Dairy Powerhouse
Dairy Cattle and Milk Production
In 2023, Germany maintained a substantial dairy cattle population of approximately 4 million, producing an impressive annual milk output of about 32.2 billion liters. Despite challenges such as adverse weather conditions and the bluetongue virus, the nation achieved a 2.6% increase in milk production.
Milk Processing and Production
Germany processes around 31.8 billion liters of milk each year, underscoring the strength of its dairy processing sector. The country is particularly renowned for its cheese production, generating around 2.4 million metric tons annually. Additionally, Germany produces about 1.5 million metric tons of milk powder and whey per year.
Major Dairy Enterprises
Key players in Germany's dairy industry include notable companies such as Molkerei Ammerland, DMK Deutsches Milchkontor, FrieslandCampina Germany, Nordmilch, and Lactalis Germany, which expanded 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 position as a major European exporter is reinforced by dairy exports totaling approximately 4.8 billion euros last year. Imports amounted to about 3.2 billion euros, with UK dairy exports to Germany experiencing a notable 25% increase, reaching £32 million. Germany is a main source of imported cheese to Spain, along with the Netherlands and France.
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. Regulatory pressures are also influencing livestock production 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 continues to support organic farming, with 1.8 million hectares allocated for organic production.
Market Conditions
Food prices in Germany have seen a 30% increase 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 control up to 13% of the EU milk market.
Trade Fairs and Events
Germany hosts significant trade events such as Anuga, the world's largest food trade event 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 development of 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, focusing on 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 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, accounting for 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 about 70 new jobs. The Bavarian facility will transition to a continuous, round-the-clock operation. Furthermore, Ehrmann and Glow25 have partnered 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.'
Europe represented 48.43% of the global market in 2025. Germany is forecast to reach $24.01bn in 2026.
Modified: 2026/08/18