Thalfang, 9 May 2016. At the beginning of May, the farmers’ associations from the milk collection area of the cooperative Hochwald Milch eG visited Hochwald’s Thalfang site to discuss the current difficult situation on the milk market and falling producer prices.
Together with Hans-Jürgen Sehn and Anton Streit (Chairpersons of the Supervisory Boards of Hochwald Foods GmbH and Hochwald Milch eG respectively), as well as Karl Eismann and Detlef Latka (Chief Executive Officers), the representatives of the Rhineland-Nassau Farmers’ Association, the Saar Farmers’ Association, the Rhineland Agricultural Association, the Rhineland-Palatinate South Farmers’ and Vintners’ Association, the Hessian and Thuringian Farmers’ Association and the Westfalen-Lippe Agricultural Association exchanged ideas on meeting the challenges facing them over the coming months. The different solutions proposed by the association officials and the dairy representatives were discussed. The association representatives emphasised both the concerns and the hardships of milk producers, who are suffering from the current low milk prices. The associations fear that the persistent price pressure will trigger an immense structural meltdown in milk production.
The food retail industry’s latest price cuts are exacerbating the poor earnings performance experienced by dairies and milk producers, and cause serious economic problems for them.
Despite this market development, Hochwald is making every effort to pay a milk price above the German national average. At present, the cost situation and planned investments are once again put to the test with an austerity programme. At the same time, all national and international market potentials are being exploited.