Germany: A Dairy Powerhouse

In 2023, Germany continued to assert its dominance in the dairy industry with a substantial dairy cattle population of approximately 4 million. This formidable livestock base resulted in an impressive annual milk output 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 a testament to its industrial strength, handling around 31.8 billion liters of milk annually. The nation is particularly renowned for its cheese production, generating approximately 2.4 million metric tons each year. Additionally, Germany produces about 1.5 million metric tons of milk powder and whey annually.

Major Dairy Enterprises

Prominent players in Germany's dairy industry include Molkerei Ammerland, DMK Deutsches Milchkontor, FrieslandCampina Germany, Nordmilch, and Lactalis Germany, which has expanded by acquiring BMI Dairy Assets. Noteworthy dairy farms 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 were about 3.2 billion euros, with UK dairy exports to Germany experiencing a notable 25% increase, reaching £32 million. Germany is a principal source of imported cheese for Spain and a key supplier of milk powder used in Switzerland.

Significant Events in the Dairy Market

Recent developments include a rise in raw milk prices and the acquisition of BMI dairy assets by Lactalis. Regulatory pressures are 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 supports 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 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.'

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, making it the leading ice cream producer among EU countries.

Location of GEA's Process Test Center

GEA's Process Test Center is located in Oelde, Germany, where it is undergoing expansion to increase capacity for customer pilot trials and internal development.