Aldi announces falling prices for dairy products

Dhe prices for dairy products are slipping again in Germany. The discounter Aldi announced on Tuesday that it would permanently reduce the prices for over 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. According to a statement, more than 350 dairy products at Kaufland 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”.

The move comes as no surprise. The trade journal “Lebensmittel Zeitung” had already reported last week that the prices for dairy products had once again come under 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.

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 “Lebensmittel Zeitung”, the dairies expect prices to rise again from 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.