Particle.news
Download on the App Store

Germany’s 99-Cent Butter Triggers Cartel Complaint as Retailers Cite Oversupply

Fresh data showing a year‑on‑year drop in milk producer prices adds pressure to judge whether steep discounts reflect market conditions or unlawful below‑cost sales.

Overview

  • Farm groups led by the Bavarian Farmers’ Association have asked the Bundeskartellamt to review suspected below‑cost butter sales, and the authority confirms it has received the complaint without announcing further steps.
  • Discounters including Lidl and Aldi cut prices sharply, with some 250‑gram packs at €0.99 and broader reductions across butter ranges that return to levels last seen around 2017.
  • Retailers and the German trade association HDE reject the allegations, arguing prices reflect an oversupplied raw‑milk market and lower input costs, and say they are complying with competition law.
  • Official Destatis figures show agricultural producer prices fell 1.7% year on year in October and milk prices dropped 1.1% year on year (down 4.7% from September), the first annual milk decline since April 2024.
  • Farmer representatives warn the cuts threaten dairies, undermine recent animal‑welfare investments and create a damaging price spiral, while dairy and retail groups stress close supplier cooperation.