Dairy farmers sound the alarm: Business closures threaten - German Dairy Industry Facing Severe Crisis, Thousands of Farms at Risk
The German dairy industry is grappling with a severe crisis. Dairy Farmers of America predict plant closures, impacting not only Germany but also global markets. Chinese milk powder imports have decreased, and competitive butter imports into Europe put further pressure on the industry. Meanwhile, regions like New Zealand and the US Midwest enjoy better farm profitability.
The German Dairy Farmers’ Association (BDM), representing a third of active milk producers and 40 percent of total milk output, warns of severe economic consequences. Milk deliveries have surged by 6.5 percent compared to last year, but dairy farmers face 'high output, low returns'. Butter prices have plummeted to €1.39 for a 250-gram pack, reaching multi-year lows. Since October 2024, butter prices at the Kempten Exchange have dropped by 35 percent, with cheese prices falling by 28 percent. As a result, many dairy farms in Germany face existential threats, and up to 2,400 to 3,700 dairy farms in Europe could be at risk of closure.
The crisis in the German dairy industry is far-reaching, with potential plant closures and job losses. It also has global implications, affecting Chinese milk powder imports and European butter markets. Dairy farmers urge action to prevent further closures and ensure the industry's survival.
