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[BUSINESS] · Germany · 18 sources

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Milk Industry Association warns of rising dairy product prices

The Milk Industry Association (MIV) has stated that significant price increases for dairy products, including milk, yogurt, and quark, are “urgently necessary.” Contract negotiations for the so-called “White Line” of fresh products have already commenced.

Several factors are driving this potential price hike. Currently, milk prices are at a five-year low, approximately 25% below last year's levels. However, strong domestic and international demand, combined with supply shortages, is shifting the market. Regional summer droughts in Germany and Europe have significantly reduced milk deliveries, while the El Niño effect in the tropical Pacific is expected to cause droughts in major global dairy export regions, further dampening worldwide supply.

Additionally, a surge in demand for protein products is increasing the need for whey concentrates. While butter prices have already begun to rise following a sharp decline in late 2025, the industry expects these broader trends to impact a wider range of dairy goods soon. Because 49% of German-produced dairy products are exported, global market developments directly influence domestic pricing.

Entities

Bundesverband des Deutschen Lebensmittelhandels · Deutscher Bauernverband · Federal Association of the German Food Trade · Germany · Milchindustrie-Verband · Milk Industry Association

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