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German milk producers seek more stable pricing mechanisms

3 February 2017 News
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Milk producers in Germany are discussing measures to counter the effects of fluctuating milk prices. They seek greater certainty in contracting over quantity and price, expansion and strengthening of cooperative structures and investment in more niche high demand products. Producers are seeking ways in which the smaller German cooperatives can compete on farm gate price with larger TNC's.  

Companies which have invested in milk powder for export are suffering due to a fall off in demand from China and the trade embargo with Russia.

There are concerns about proposed free trade agreements between the EU and New Zealand and Australia with predictions of up to 5% loss of milk production in Germany if agreements with these major milk producing nations are finalized.