Aldi is lowering the milk price
Aldi puts forward and lowers the milk price – and the competition follows suit. Consumers should be happy, but they’ll have to pay more for butter for it.
Milch is getting cheaper, butter more expensive: there are again significant price changes on the refrigerated shelves of supermarkets. On Thursday, Aldi Süd and Aldi Nord presented and significantly reduced the prices for fresh and long-life milk. The liter of whole milk in the lowest price category now costs only 69 cents instead of the previous 78 cents. The price for a liter of low-fat milk of the own brand has fallen from 68 to 61 cents.
May 1st is the cut-off date for new half-year supply contracts between dairies and trading groups for drinking milk and for a number of dairy products in the lower price ranges.
The milk prices set by Aldi are generally used as a guide for the other supermarket chains. Rewe announced on Thursday that it would change prices “promptly” accordingly. The Norma retail chain followed suit immediately and lowered milk prices to the same level as Aldi. Lidl confirmed the price cut for whole milk. Edeka did not make any reference to competition reasons.
Increased milk volume makes milk cheap
In contrast to milk, Aldi increased butter prices significantly on Thursday. The price for the 250-gram piece rose at Aldi Nord and Süd by 20 cents to 1.79 euros. That means a surcharge of around 12.6 percent. Here, too, the competition should soon follow suit.
The reason for the sharp drop in the price of drinking milk is above all the recent increase in the amount of milk, said Björn Börgermann, speaker at the Dairy Industry Association, the German Press Agency. However: “The global situation on the milk market is currently extremely indifferent.” While the milk volume in Ireland and New Zealand recently remained below the previous year’s level, the United States, another important supplier on the international markets, increased production significantly.
What consumers are happy about when it comes to their wallets causes displeasure among dairy farmers. They anticipate that the dairies will soon be able to pay them less for the milk. “There is too much milk in the area, and the dairies have again undercut each other in the negotiations with the trade,” said the spokesman for the German Dairy Cattle Association, Hans Foldenauer. “All in all, it is we dairy farmers who foot the bill.” There will be no clear improvement in the payments made by the dairies to the dairy farmers. According to Foldenauer, they currently receive more than 30 cents per liter.
High demand for fat
According to the experts, the high demand for fat is responsible for the rise in butter prices. “The fat content in the raw milk was lower at the beginning of the year,” said Börgermann from the milk industry association. At the same time, a lot of it was needed for the production of cheese with a higher content of fat, “because there was better utilization. In addition, there is the beginning asparagus season, when a lot of butter is eaten.
At the end of last year, butter prices had temporarily risen to their highest level in decades. As recently as September, the entry-level 250 gram package cost 1.99 euros. In the meantime, price and demand have normalized again.