Aldi, Lidl and Co.: Milk and butter are probably significantly more expensive - experts expect extreme price increases
Created: 04/21/2022 05:06
By: Magdalena von Zumbusch
Food prices have been rising since the Ukraine war: Experts believe that the price of dairy products is set to increase in the coming weeks and months.
©Oliver Berg/dpa
According to an expert from the German Milk Association, the price of milk should rise by around 20 cents.
The price increases will probably only reach consumers in full in the summer.
Munich - Since the Ukraine war, food prices have risen drastically.
Dairy products will be particularly hard hit over the next few months, says an expert.
Milk is said to be ten cents more expensive on average, and not only branded products but also discounter products such as Aldi, Lidl and Co. are affected.
Extremely increased producer prices for milk production: only partially reached consumers
The prices for dairy products were already rising before Easter, and things will continue like this: In February 2022, producer prices for butter were 64 percent higher than in the previous year, Eckard Heuser, the general manager of the German Dairy Industry Association (MIV), reported to the
Handelsblatt.
With milk it was at least 30 percent more.
So far, these price increases have only partially reached the consumer.
According to Heuser, wholesale prices have already risen significantly, but will only reach consumers towards the summer.
The increased production costs are leading to a price increase for all products, not just for branded products.
The discounter Aldi, for example, recently raised butter prices by 30 percent, the 250 gram pack costs 2.09 euros.
Heuser explained the price increases through the interaction of various factors: On the one hand, the supply of milk had decreased.
At the same time, demand has risen sharply, which is also due to hamsters.
Consumers would freeze butter and stock up on UHT milk, Heuser told the
Handelsblatt
.
But food manufacturers are also hoarding.
They store more stocks of milk, butter and cheese in order to always be able to deliver.
This shortage has led to a relatively strong price increase.
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Cause of high milk prices: "Real and psychological effects" of the Ukraine war
The war in Ukraine played an important role in both the shortage of dairy products and the increased demand.
"The war has real and psychological effects," Heuser told
Handelsblatt
.
Ukraine is an important supplier of animal feed for Europe, especially for protein animal feed such as rapeseed meal or corn.
Some of the old harvest is still in the Ukrainian ports, which are mined and sealed.
According to Heuser, the harvest of grain or rapeseed in Ukraine will collapse by 40 percent in 2022.
Therefore, the prices for feed and fertilizer would rise sharply, which also affects eggs and meat, for example.
In addition, the supply chains that were interrupted or disrupted by the war are causing bottlenecks in the supermarkets.
So much for the real effects of war.
Heuser does not elaborate on the psychological effect: What is meant is probably the insecurity of people in Germany, which explains the phenomenon of panic buying.
Increased prices for dairy products: "Never experienced in thirty years," says the expert
The expert Heuser has concrete figures ready for the price increases in the area of milk and dairy products, which are to be expected: "A liter of milk will definitely exceed one euro," was his forecast.
The cheapest variety is currently available for 79 cents.
"With butter, I calculate ten cents more per pack," says Heuser.
At least for the dairy farmers, the rising prices are currently positive, because: According to Heuser, the higher production costs are not only covered by the higher prices.
"Margins are increasing."
"2022 and 2023 will be good years for milk producers," said the dairy industry boss.
In 2021, German milk producers would have earned an average of 36 cents per liter of milk.
The milk price is now a good 43 cents.
Heuser expects the price to rise to 50 cents per liter of milk.
"These are prices that I have never experienced in my 30 years in the industry," he says.
Dairy production is currently profitable, which is good news for dairy farmers who have made losses with their hard work for many years.
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