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Farmer milking: "Save at every turn"
Photo: Philipp Schmidt / DER SPIEGEL
Further sharp price increases are on the horizon in food retailing.
From the beginning of May, probably as early as next week, he expects price jumps of 20 to 25 percent for dairy products, the head of a large dairy told SPIEGEL.
"And that's just the beginning, further prize rounds will follow."
Such signals are also coming from the food industry.
According to the food multinational Nestlé, the previous price increases do not yet fully reflect many of the consequences of the Ukraine war, such as increased costs for energy and feed.
The latest increases were negotiated months ago, and current prices are only being determined these days.
»Retailers afraid of a lack of availability«
The jumps in dairy products are particularly evident.
Just a few weeks ago, the discounter Aldi pushed the prices up for many items, some of them significantly.
Other retail chains followed.
Another increase is likely.
At the moment, conventional dairy farmers are getting more than 44 cents per liter – they have "never gotten that much before," says Ottmar Ilchmann from the rural agriculture working group.
If such prices would have previously led to farmers getting the most out of their cows with optimized feeding, many farmers now have to "save everywhere" despite the high prices, which further reduces the milk volume: Not only fertilizer and diesel are clear become more expensive, but also the concentrated feed.
Further price jumps, according to Ilchmann,
also had to do with the »retailers' fear of a lack of availability«.
The supply is scarce, the demand is high.
"We are experiencing a situation that we haven't seen in 40 years," says a retail manager.
He predicts "radical shifts in the market" with more power for producers - further accelerated by the fact that the supply chains to Asia no longer function smoothly due to Corona.
All retailers would have to keep up with the higher end prices in order to avoid empty shelves.
"If we didn't raise the price, we would have to sell below cost." That's forbidden in Germany.
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