Why are Germany milk prices falling now?

High deliveries, rising inventories, and intense discount competition are pushing prices down. Retailers led with a butter price of €0.99 to drive traffic, and that pressure rippled across dairy. With supply outpacing demand, wholesale quotes weakened, squeezing farmgate margins and prompting Berlin to plan a milk summit for stabilization.

What could the Berlin milk summit change?

Officials are considering tighter market monitoring, transparency on promotions, and voluntary private storage to absorb excess product. If implemented quickly and at scale, these tools could steady Germany milk prices, support farm incomes, and reduce volatility. The details on timing, funding, and exit rules will determine the market impact.

Will lower dairy prices cut inflation in Germany?

Yes, in the short term. Cheaper butter and milk can soften food CPI readings, especially if retailers keep promotions active. The effect may be temporary if storage lifts wholesale prices later. Energy and logistics costs also shape final tags, so inflation relief depends on more than dairy movements.

Who benefits and who is hurt by cheaper dairy?

Consumers and discount grocers benefit from lower shelf prices and stronger traffic. Processors and farmers face tighter margins if weak wholesale prices persist. Brands may lose share to private label unless promotions intensify. Policy support can cushion upstream players while keeping stable prices for shoppers.

Global Market Insights

Germany Milk Price Rout, February 07: Berlin Plans Milk Summit

ByDanny Kontos February 7, 2026February 7, 2026

Germany milk prices are sliding as discounters cut butter to €0.99 and fresh milk offers widen across stores. Berlin plans a milk summit on 7 February to weigh market monitoring and temporary storage to cool the glut. The outcome matters for EU food inflation, farm incomes, and retailer margins. We set out what is driving the drop, how proposed tools may stabilize Germany milk prices, and what near-term signals investors in consumer and agriculture exposures should track.