I can't speak for Germany but America's small farms do create quality products. In many cases, many small farms will contract with a large company. The large company does the marketing so the small farms can focus on producing milk, eggs, crops, etc.
For instance: There's a large corporation called "Organic Valley." I buy milk and cheese with their logo. On the front of their milk carton you'll see "ETHICALLY SOURCED FROM SMALL FAMILY FARMS." Then, on the back you'll read this statement: "Small Farms - Big Impact. We're a farmer-owned co-op made up of small family farms dedicated to the principles of organic agriculture, including sustainable farming practices and animal care. Your purchase helps to keep these farms going strong for generations to come, creating a brighter future for all of us."
So small farms associated with this large company may be safe -- for the time being. But there are tens of thousands of small farms that are less fortunate. Between government regulations; the rapid increase in the cost of equipment & feed; the increase in the cost of transportation; and the encroachment of huge, mega corporations like Monsanto, Cargill, Tyson, etc., small farms end up breaking even or losing money.
Also, small farms rely heavily on rain and a frost-free growing season. So their success relies heavily on perfect weather patterns.