Dairy industry association warns of significant price increases for dairy products

Berlin. Milk, yoghurt and quark could soon become more expensive again. “Significant price increases for dairy products” are “urgently necessary,” said the Dairy Industry Association (MIV) at the request of the German Press Agency. The association said that initial discussions on the upcoming contract negotiations for the so-called White Line (i.e. drinking milk, yoghurt, quark and similar fresh products) have already started, but did not want to give any specific figures for ongoing negotiations. The “Lebensmittelzeitung” had previously reported.

The milk price is currently around a quarter lower than in the same period last year and has therefore reached a five-year low, according to the MIV. From the association's point of view, several factors speak for rising prices: Sales of milk and milk products are going extremely well both in Germany and internationally. In addition, the summer drought in Germany and Europe caused milk deliveries to plummet regionally. Many experts also expected a strong El Niño effect in the tropical Pacific to significantly weaken global milk deliveries. The El Niño effect may cause droughts in key dairy export regions.

The global market has considerable weight for the German dairy industry: According to the Federal Association of the German Food Trade (BVLH), 49 percent of the dairy products produced in this country are exported. Developments on the world market therefore have a direct impact on the German milk price.

The first signs of a turnaround have already been seen with butter recently: after a sharp price drop at the end of 2025, which temporarily pushed butter below the mark of one euro per 250 gram packet and prompted farmers' associations to protest, the price rose again. Supermarkets and discounters increased the price of own-brand packages by 14 cents to 1.19 euros in mid-September. Sales for cheese, milk powder and protein products are also increasing, while the price for fresh whole milk has remained stable at around 95 cents per liter throughout the year.

The protein boom also plays a role, says Kerstin Keunecke from Agrarmarkt Informations-Gesellschaft (AMI). Whey protein concentrates are currently in high demand. Their production requires whey concentrate, which is correspondingly scarce and expensive. Whey is the liquid byproduct that is created from milk during cheese making.

Farmers are pushing to benefit from the expected price turnaround. “The German Farmers’ Association demands that emerging milk market recoveries be passed on to producers as soon as possible, as fertilizer, energy and fuel costs continue to place a considerable burden on companies,” said the vice president of the farmers’ association and milk president Karsten Schmal. Anyone who wants high-quality dairy products from domestic production in the future must ensure “that increasing revenues are distributed fairly along the value chain and reach the milk producers,” says Schmal.

The Federal Association of German Dairy Farmers (BDM) made a similar statement. In view of declining milk deliveries and significantly better demand, especially for milk protein, the demand for higher prices for drinking milk and quark is “highly appropriate,” said a spokesman.