Milk price at Aldi slips below the one-euro mark – competitors are following suit
Dairies are under pressure – prices for dairy products are falling
Source: pa/dpa/Sebastian Kahnert
Dairy products such as milk, cream and yoghurt are becoming cheaper in Germany. The reason for this is lower commodity prices. However, it is uncertain how long consumers will benefit from this – the trend could turn around as early as autumn.
Dhe prices for dairy products are slipping again in Germany. The discounter Aldi announced on Tuesday that it would permanently reduce the prices for more than 50 dairy products such as milk, cream or yoghurt by up to 15 percent from Wednesday. The price for a liter of UHT milk or fresh whole milk from Milsani’s own brand is to drop from 1.15 euros to 99 cents.
At Kaufland, according to a statement, more than 350 dairy products will be cheaper from Wednesday because raw material prices have fallen. Edeka and Netto Marken-Discount also announced that they would reduce the prices for dairy products “to a comparable extent”.
However, the move comes as no surprise. The industry journal “Food Newspaper” had already reported last week that the prices for dairy products had come under renewed pressure in the trade negotiations with the dairies. “There are signs of renewed price reductions for drinking milk and other standard White Line items,” the paper wrote.
Dairies expect prices to rise from autumn
It should only be a matter of time before the rest of the trade follows the price reduction. Dairy products are regarded as price points, which customers use as a guide when perceiving a retailer’s price. However, it is uncertain how long consumers will benefit from the price reductions.
According to the report in the “Lebensmittel Zeitung”, the dairies expect prices to rise again from next autumn. “We are heading towards an undersupply,” the newspaper quoted the chairman of the Dairy Industry Association (MIV), Peter Stahl. According to the report, the CEO of Sachsenmilch Leppersdorf, Mathias Hauer, also expects a trend reversal in milk prices for the second half of the year.