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German Discounters Cut Own-Brand Butter to €0.99 as Milk Costs Fall

Retailers cite cheaper milk on global markets as the driver, prompting farmer warnings over squeezed producer prices.

Overview

  • Lidl and Norma now sell 250-gram packs of own-brand German butter for €0.99, with Edeka, Rewe, Penny, Netto, and Aldi announcing further price reductions.
  • Shelf prices have dropped to less than half of last year’s levels after a record peak around October 2024.
  • AMI reports continued declines in global milk prices in early December due to growing supply, with German dairies receiving more milk in the second half of the year.
  • Lidl says it is passing lower input costs directly to shoppers and forgoing margin, and it has also cut prices on other butter lines and a vegan spread.
  • Dairy-farmer groups, including the BDM, warn that retail cuts risk driving down farmgate milk prices, citing recent declines since autumn and potential threats to farm viability.