Price war in the supermarket: "The milk market is upside down"
Created: 12/19/2022, 12:02 p.m
By: Stella Henrich
The prices for milk have risen enormously in the trade.
Industry experts give Aldi's pricing policy as the reason for this.
So far, organic milk producers have not been able to benefit from this.
Why actually?
Munich - "The milk market is upside down," complains Jan Plagge, President of Bioland.
The cultivation association represents around 10,000 companies from the agricultural and food industry that produce, process and sell organic products from the region.
The entire organic milk industry is complaining about a lack of sales, the President told the
Lebensmittel Zeitung
(LZ).
This development apparently started with the price increase for organic whole milk at Aldi.
With far-reaching consequences.
An entire industry is now in crisis.
increase in producer prices
The prices for animal products in October 2022 were 46.8 percent higher than in October 2021. The price of
milk
in October 2022 was 56.3 percent higher than in the same month last year.
Source:
Federal Statistical Office in December 2022
With Aldi, the top dog on the market, which is considered a pioneer for the entire food industry, other discounters followed suit and increased the prices for milk.
The sales market has since fallen by up to 30 percent, reports the industry journal.
A brief drop in milk prices could not change anything about the decline.
According to industry experts, the sale of organic milk fell by 20 percent compared to the previous year.
Aldi is turning the milk price: price differences between conventional and organic milk are too small
According to Josef Jacobi, for the first time in years it is no longer possible to market all of the organic milk from the farms as organic milk.
Jacobi is a co-founder of the Upländer farm dairy.
The Uplanders therefore no longer rule out volume reductions.
But why can't the manufacturers of organic milk benefit from this situation on the market and sell more of their organic products?
According to agricultural economist Achim Spiller, this is mainly due to the fact that the price difference between organic milk and conventional milk has narrowed significantly.
According to the online portal
Watson
, the discounter Aldi has now agreed an increase in its purchase prices with producers, so the prices for organic milk could rise again at the turn of the year.
This should make it difficult to find new buyers for organic milk in order to market the surplus milk from organic farmers.
The price differences between conventional and organic milk are simply too small.
But this is exactly where the Andechs dairy now senses its advantage.
A campaign aims to inform consumers about the added value of organic products in order to win them over as organic buyers.
Organic milk or conventional milk?
In retail, the price structure is no longer correct.
(Iconic image) © Arnulf Hettrich/imago
Aldi is turning the milk price: image campaign is now intended to convince consumers of the added value of organic milk
It remains to be seen whether this campaign will trigger a bioboom similar to that during the Corona crisis.
According to Agrarheute
, the crisis led to
significant growth in organic milk production.
The amount of organic milk delivered in the first eight months of 2022 is currently 2.6 percent higher than in the previous year - in the case of conventional milk, on the other hand, the milk volume was 1.8 percent lower than in the previous year.
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If you look at the important organic milk state of Bavaria, the organic farmers there even delivered 4.6 percent more organic milk than in the previous year - and in Schleswig-Holstein, the state with the highest organic prices, the organic milk volume even grew by 8.1 percent , continued
Agrarheute
.
The problem is therefore not the quantity available on the market, but the price difference between the two types of milk.
And since consumers primarily pay attention to the price when shopping in supermarkets and discounters and are bargain hunters, this is where the whole dilemma of the industry becomes apparent.
The milk price structure in retail is right and wrong.
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