ASPECTS OF MILK MARKETING IN GERMANY

For the sharp drop in profitability in the sector of dairying and dair y economy in recent years at least three statements can be made: a pro blem relating to quantities which threatens to aggravate as a result o f the GATT/WTO mechanisms if the quota system will remain unchanged; t he extremely unfavourable horizontal competitive situation of supplier s offering products which are almost arbitrarily exchangeable, as well as a rather unbalanced competition from the vertical viewpoint betwee n the dairy-and the food industry with the consequence that considerab le problems concerning the reallocation of cost will arise as a result of the pressure exerted by quantities and the far-reaching homogeneit y of products and assortments. A trend reversal requires urgently achi eving a better balance on the domestic market, a better coalition betw een the actors for reasons of competition policy. a markedly higher ma rketing expenditure in order to achieve a better heterogeneity of milk product supplies and finally the farmer's understanding for the reali zation of market oriented corporate strategies.