Provisional data from the German Federal Statistical Office shows that German exports of milk and dairy products rose by 20.3% in the first six months of this year to EUR2.9bn (US$4bn).

However, reflecting rising prices for dairy products, volume growth was significantly lower at 9.2%. The agency said the increase could be attributed both to a rise in volume and average prices.

Export prices of milk rose by average of 4.5%, but average prices of milk powder increased by as much as 25.5% in the period from January to June 2007, the statistics office said.

Moreover, upward price momentum has gathered pace during the six months, with second-quarter average price growth reaching 8.5% for milk and 35.7% for milk powder.