BERLIN / LONDON (IT BOLTWISE) – Prices for butter in Germany have fallen to a record low, offering consumers significant savings. Thanks to falling milk prices and increased production, supermarkets and discounters can pass on the costs to customers. However, this development also has an impact on dairy farmers, who warn of possible negative effects on producer prices.
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The current developments on the German butter market are encouraging for consumers, as prices for branded butter have fallen to a new low. A 250 gram packet is now available for just 99 cents, which is a significant reduction compared to last year. This price reduction is mainly due to the decline in milk prices on the global market, encouraged by an increasing supply of milk.
Supermarkets and discounters such as Lidl, Edeka, Netto, Rewe and Penny have announced that they will pass on the lower raw material prices directly to customers. This transparency in pricing is positively received by consumers as they can benefit from lower prices. At the same time, however, there are concerns from dairy farmers who warn of possible pressure on producer prices.
The price development for butter has been characterized by strong fluctuations in recent years. While the cheapest own-brand butter temporarily cost 1.39 euros in the summer of 2023, the price reached a high of 2.39 euros in October 2024. However, since February of this year there has been a downward trend, which has benefited consumers.
The effects of this price development are diverse. On the one hand, consumers benefit from the lower prices, but on the other hand, dairy farmers are faced with the challenge of covering their production costs. Industry experts warn that the ongoing price reduction could have a long-term negative impact on agriculture if producer prices continue to come under pressure.
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