Germany organic milk prices decline amid rising supply

Organic milk prices in Germany have been declining since the beginning of the year. In July, several organic dairies lowered their prices, with some falling below 60 cents per kilogram. This downward trend follows a similar pattern in May, when prices first dropped below the payout levels of the previous year.

A primary driver for this price pressure is a significant increase in milk supply. Data from the Federal Office for Agriculture and Food (BLE) showed a 5.7% increase in organic milk deliveries in June compared to the previous year.

Despite the decline, the price gap between organic and conventional milk remains substantial. The difference currently stands at approximately 25 cents, which is more than double the 11-cent gap recorded last year.