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Dairy farmers sour after Aldi slashes milk prices
Published: 3 May 12 09:00 CET | Print version
Online: http://www.thelocal.de/money/20120503-42315.html
German discount supermarket Aldi Süd sparked concern among dairy farmers on Wednesday by announcing it was slashing the retail prices of dairy products by up to ten percent.
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But farmers were taken by surprise by the announcement by Aldi Süd, one of Germany’s biggest food retailers, that prices on a wide range of dairy products would be reduced by up to 10 percent. The price of a litre of milk was slashed by 6 cent, and that of a block of butter by 14 percent.
The announcement triggered disapproval from the head of the AgrarMinisterKonferenz, which represents industry as well as state and federal agriculture ministries. Alexander Bonde said that, “the irresponsible price battles of discount supermarkets” was ruining the Germany’s farms and rural areas.
In 2011, German dairy cows churned out 29.3 million tonnes of milk – the most ever produced. This is a development that has “put the dairy industry under pressure,” said Hans Foldenauer, spokesperson for the German Federal Dairy Farmers Association.
He added that although the volume of milk produced had risen, the number of dairy producers was falling and that farmers are having to battle constantly against climbing energy and animal food prices.
Another huge discount supermarket chain Rewe said it would also be reducing prices on milk and butter from Thursday but did not confirm by how much. Another popular German supermarket chain, Edeka, confirmed that they would not be making changes to their dairy prices.
DPA/The Local/jcw
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Your comments about this article:
does not mean farmers are getting less for there milk.
Farmers will sell there product at the same cost. Stores will sell milk as a lost liter (lose money) to get you in the store to buy other products.
Lower cost milk products mean more sales and farmers will sell more milk to keep up with demand SO WHATS THE PROBLEM
We all win
Farmers have to make a living and if the price is reduced to much this will not be the case. Notice the price is dictated by the supermarket, not the dairy or farmer or even the householder.
I detest supermarkets they have to much power over the people, you can fool all of the people some of the time, and some of the people all of the time, which is just long enough to close down the small trader.
I pay a little more for my milk. It is locally produced, organic, non homogenised, it even tells you the name of the heard on the label, and best of all it tastes better and the farmer gets a proper price, win win win!.