Overview
- Supermarkets and discounters now sell 250-gram packs for €1.39 after a third round of cuts in six weeks led by Aldi and Lidl.
- The German dairy farmers’ association BDM says many producers are not covering costs and warns of mounting liquidity problems that could force farm exits.
- BDM reports milk deliveries are about 6.5% above last year’s level, and higher milk fat content means less raw milk is needed per unit of butter.
- Industry quotations have slumped since late 2024, with the Kempten butter price down roughly 35% and cheese down about 28%, signaling broad market weakness.
- Retailers are using butter as a traffic-driving ‘Eckprodukt’ in price promotions, a strategy analysts say is reinforced by favorable production conditions this year.