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Retailers under criticism

Date: 10.01.2021Source: moproweb

The latest price cuts for butter by Aldi are being harshly criticised by the dairy industry. Apparently, the retail trade is using its market power against the milk producers even more unrestrainedly than in 2013/14. The price quotations in the milk market no longer seem to be relevant for the trade. In 2019/20, the quotations were below the butter price in the shops, thus increassing profits for the trade chains. Today, sales prices are below the quotation because the price war between the chains has broken out again in full.

Experts estimate that milk production costs have risen by 3-4c/kg milk in recent years. Milk prices, on the other hand, have fallen by an average of almost 4c/kg since 2017.

Roland Sossna / IDM

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