BERLIN / LONDON (IT BOLTWISE) – The ongoing decline in the price of dairy products is putting German dairy farmers under enormous pressure. The Federal Association of German Dairy Farmers (BDM) warns of an existential threat to many businesses, as income barely covers production costs. Without rapid measures, there is a risk of massive structural change in agriculture.
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German agriculture is facing a serious challenge as falling prices for dairy products such as butter and cheese threaten the existence of many dairy farmers. The Federal Association of German Dairy Farmers (BDM) is sounding the alarm and calling for urgent measures to ensure the economic stability of the companies. The combination of increasing milk deliveries and falling prices has exacerbated the situation, bringing many farmers to the brink of giving up their businesses.
The BDM, which represents around a third of active German milk producers, sees itself as having a duty to defend the interests of dairy farmers. Originally founded to offer an alternative to established agricultural representatives, the association has taken on a central role in the current crisis. Prices for butter and cheese have fallen by up to 35 percent in a year, while milk deliveries have increased by 6.5 percent. This dynamic creates a precarious financial situation for producers.
Ursula Trede, board member of the BDM, emphasizes that trust in market self-healing is not enough. Market participants cannot wait for supply to regulate itself. Instead, targeted measures are required to stabilize prices and ensure the continued existence of dairy farming in Germany. This includes both market regulatory measures and political support for the affected farmers.
The economic challenges facing dairy farmers are not only a national problem, but also require a European solution. The BDM therefore calls for coordinated action at the European level to ensure the economic viability of dairy farms. Without such measures, there is a risk of massive structural change in agriculture, which could sustainably change not only dairy farmers, but also the entire agricultural economy in Germany.
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