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[BUSINESS] · Germany, Belgium · 25 sources

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Dairy industry seeks price hikes for milk and yogurt

The Milk Industry Association (MIV) has called for significant price increases for dairy products, including milk, yogurt, and quark. Contract negotiations for these fresh products, known as the ‘white line’, have already commenced.

Industry representatives cite several factors driving the need for higher prices. Current milk prices are at a five-year low, approximately 25 percent below last year's levels. However, demand remains strong both in Germany and internationally. Supply is being pressured by summer droughts across Europe and Germany, which have reduced milk deliveries and increased the cost of animal feed. Additionally, experts warn that the El Niño phenomenon in the tropical Pacific could lead to droughts in major dairy export regions, further reducing global supply.

In Germany, where 49 percent of dairy production is exported, global market shifts have a direct impact on domestic prices. Some price increases are already visible; for instance, the price of store-brand butter rose by 14 cents in mid-September. Rising costs for energy and fertilizers have also prompted farmers to seek higher revenues to maintain production.

Entities

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

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