Supply contracts with retailers meant that dairies could only pass on sharp cost increases with a delay, said association boss Peter Stahl on Friday. In some cases, the steps were not taken to the extent that they should have been taken in retrospect. “But that also means that we are of course facing further price increases, which we will see in retail prices.”
However, the dairy industry association also referred to the market power of the large supermarket chains and the competition between the retailers who decided on the prices on the shelf. Price peaks may already have been reached for some product groups, but not for others, said Stahl.
“The butter price has definitely reached its upper limits2, said the general manager of the association, Eckhard Heuser. Slight increases are to be expected for cheese in November and for milk in January. will be exceeded,” said Heuser. According to industry observers, milk with a fat content of 1.5 percent is currently mostly just under one euro in the lowest price range in retail.
A reaction can already be observed in the purchasing behavior of consumers. With branded products, less is bought at the regular price and more on sale. In addition, there is also a shift in dairy products from branded products to retail brands.
According to the information, dairies and dairy farmers are exposed to enormous cost increases – including for energy. The association appealed to politicians that one was dependent on a stable energy supply. Dairies have primarily switched to gas in the past. The farmers’ average earnings per kilogram of raw milk will rise to over 50 cents this year. In 2021 it was 36 cents.
