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If gas supply stops, dairies will stop as well

Date: 08.04.2022Source: IDM
Press conf of MIV on 8 April 2022 in Berlin

 

German dairies are increasingly competing for the raw milk, noted dairy industry association MIV Chairman Peter Stahl (Hochland) at a press conference at the Berlin Milk Forum on 8 April. Milk processors are therefore currently paying milk prices that are higher than their milk utilisation. However, this is not affordable in the long run, so that the sales prices to food retailers have to be adjusted quickly. Stahl spoke out in favour of shorter contract periods; in the case of cheese, in view of the incalculable developments in the market, negotiations should no longer be held with retailers every six months, but every month.

At present, only a few sales prices had been raised to the food retail trade, Stahl reminded, this concerns butter and some cheeses. The big wave of price increases is not due until June/July. Of the recent broad price increase at Aldi (400 products became significantly dearer), virtually nothing is currently reaching the dairies.

If gas imports from Russia stop, the dairy industry will have to stop production very quickly, Stahl warned. A changeover to other energy sources, e.g. oil, is not possible without further ado; in addition, appropriate permits have to be obtained for oil combustion. MIV Managing Director Eckhard Heuser made the dramatic situation clear by pointing out that if gas supplies were to fail, oil would hardly be available any more. Therefore, according to Stahl, the dairy industry with its upstream suppliers must be counted among the critical sectors for State gas allocation in any case.

MIV sees an urgent need for discussion in the area of GMO-free products. Here, as a result of the war, there is an acute shortage of appropriate feed, which VLOG, government and trade apparently see differently. Stahl called for proactive action, because dairies need long lead times for a changeover, e.g. for new packaging material.

Roland Sossna / IDM

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