German Discounters Drive Butter to Two-Year Lows in Intensifying Price War

Overview

• Lidl’s fifth cut this year set Milbona Deutsche Markenbutter (250 g) at €1.39, with Aldi matching on Milsani and Norma listing Landfein Die Streichbare at €1.29.
• Retailers say a high milk supply has lowered raw-material costs, and they present the reductions as passing savings through to shoppers.
• Lidl reports roughly a €1 drop in butter prices since January, a reduction of about 41 percent, taking several varieties to their cheapest levels in roughly two years.
• The cuts extend beyond classic butter to organic options and plant-based spreads, and rivals including Rewe, Edeka, Kaufland, Penny and Netto have followed.
• The Bundesverband Deutscher Milchviehhalter warns of a crisis, citing a 35 percent fall in the Kempten butter quotation since October 2024, milk deliveries up 6.5 percent year over year, only slight demand gains and liquidity strains on farms.