In Baden-Württemberg, the economic situation for many dairy farms will worsen at the end of April 2026. The state farmers’ association sees the farms in a precarious position. Diesel, fertilizer, and other operating costs have risen significantly, while retailers are lowering the price they pay for milk. The war in Iran is exacerbating these cost developments. At the same time, price wars in the food retail sector are squeezing producers’ profits. Around 4,800 farms with approximately 300,000 cows are affected. (welt: 28.04.26)
Dairy farms are losing their basis for calculation
Many farms can barely cover their costs anymore. While revenues are falling, expenses for feed, energy, and operating supplies remain high. As a result, the financial leeway of many family farms is shrinking.
The association sees the primary responsibility lying with the food retail sector. Special offers there are intensifying the pressure on regional producers. According to the industry, this is leading to high-quality, locally produced goods being sold too cheaply.
Price wars are impacting regional supply
Butter, in particular, is showing the effects of the price spiral. Prices are once again approaching the one-euro mark. While this may seem attractive to consumers in the short term, it weakens the producer base.
Dairy farms need stable prices because they produce daily and have to invest for the long term. Declining revenues therefore jeopardize barns, equipment, and succession planning. At the same time, the risk of further farm closures is increasing.
Structural change continues to accelerate
Since 2010, the number of farms in the state has more than halved. This decline is transforming entire regions. With every farm that closes, jobs, added value, and agricultural infrastructure disappear.
The state farmers’ association is therefore calling for political relief and less bureaucracy. Furthermore, retailers must pay regional producers more fairly. Without better prices, more dairy farms will face financial ruin.