1. General Assembly BCZ – CBL | 10.06.2011 | Brussels „The European dairy sector: The German way“ Dr. Karl-Heinz Engel President of the German Dairy Industry Association (MIV), CEO of Hochwald Nahrungsmittel-Werke GmbH, Thalfang

2. Dr. Karl-Heinz Engel | General Assembly BCZ – CBL | 10.06.2011 | Brussels2 I) Introduction of speaker / company II) Introduction of the German dairy sector III) „The German way“

3. Milk collection area

4. Company profile 2010

5. Development of turnover Mio. € *

6. Sales share by product group 2010 Cheese

7. Hochwald Destinations Hochwald serves 130 countries worldwide

8. Rated „very good“ by Öko Test magazine

9. I) Introduction of speaker / company II) Introduction of the German dairy sector III) „The German way“

10. Dr. Karl-Heinz Engel | General Assembly BCZ – CBL | 10.06.2011 | Brussels10 Germany: Key Figures of Milk Production

11. Dr. Karl-Heinz Engel | General Assembly BCZ – CBL | 10.06.2011 | Brussels11 Shares of EU Milk Production 2009 (million t and %) Total EU 27: 147 million t German position in the world: Around 5 % of all cows‘ milk

12. Dr. Karl-Heinz Engel | General Assembly BCZ – CBL | 10.06.2011 | Brussels12 Germany: World’s second largest milk processor 10 11 13 16 18 24 25 29 86 Argentina Mexico Italy Netherlands United… Russia New Zealand Brazil France China Germany USA 97 % of produced milk are delivered to dairies Source:ZMB, World Dairy Situation 2009 Mill. tonnes

13. Dr. Karl-Heinz Engel | General Assembly BCZ – CBL | 10.06.2011 | Brussels13 Capable big and medium-sized dairies …

14. Dr. Karl-Heinz Engel | General Assembly BCZ – CBL | 10.06.2011 | Brussels14 …paying competitive milk prices in the heart of Europe

15. Dr. Karl-Heinz Engel | General Assembly BCZ – CBL | 10.06.2011 | Brussels15 How milk is used in Germany Quelle: ZMP, ife

16. Dr. Karl-Heinz Engel | General Assembly BCZ – CBL | 10.06.2011 | Brussels16 Impressive Growth of Cheese Production Quelle: ZMP, ife Since reunification: doubling of production! (Including fresh-cheese)

17. Dr. Karl-Heinz Engel | General Assembly BCZ – CBL | 10.06.2011 | Brussels17 High Consumption-Level

18. Dr. Karl-Heinz Engel | General Assembly BCZ – CBL | 10.06.2011 | Brussels18 World‘s largest cheese exporter Quelle: ZMP, ife

19. Dr. Karl-Heinz Engel | General Assembly BCZ – CBL | 10.06.2011 | Brussels19 structural change on the farms ▪ small → big ▪ south → north ▪ conventional → bio or GMO-free change in lobbying ▪ in times of lower or volatile milk prices: → milk boycott + radicalization change in policy ▪ despite black/yellow coalition → more consumer protection Situation today:

20. Dr. Karl-Heinz Engel | General Assembly BCZ – CBL | 10.06.2011 | Brussels20 change in communication ▪ more „scandals“ on TV / in public audience ▪ more „fairness“ (?), pricing ▪ „greening“ in public audience But everything should be cheap! Situation today:

21. Dr. Karl-Heinz Engel | General Assembly BCZ – CBL | 10.06.2011 | Brussels21 Removal of quota system After removal of the quota system in 2015 we expect not a dramatic increase in milk production  Greening way of Germany  no limitation of milk production from dairy industry (private and cooperative)

22. Dr. Karl-Heinz Engel | General Assembly BCZ – CBL | 10.06.2011 | Brussels22 Milk package of the EU - Commission  EU – Commission has managed the market the last period quite good  the milk package was born in the last milk crisis  so far low impact on German milk sector  german dairy industry is on the way to a liberal milk market after 2015

23. Dr. Karl-Heinz Engel | General Assembly BCZ – CBL | 10.06.2011 | Brussels23 Thank you for your attention!