June 5, 2008

Milk supplies running low in German shops
    

Shops in Germany are running out of milk after days of protests by dairy farmers against low milk prices.

The strike had cost the dairy industry nearly EUR 50 million (US$77 million), said the German milk industry federation.

The dairy farmers said rising fuel and feed costs have pushed up their operating costs but the retail price of milk has not increased correspondingly. The farmers are now demanding a minimum price of EUR 0.43 (US$0.66) per litre of milk, at least 20 percent more than the current price.

Since the strike started on May 27, retailers have told consumers not to rush out to buy milk while Juergen Abraham, head of the Association of German Food Industries had said the consumers would not be affected as Danish and Dutch milk would fill up the void left behind by German dairy farmers.

However, supermarket chains Plus and Real, have both said milk supplies are running low at some outlets.

Milk producers in neighbouring countries, including Belgium, Austria and Switzerland, are urging dairy farmers to join the strike or to refuse exporting milk to Germany.