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Lidl Cuts Butter to €0.99 as Rivals Match and Dairy Farmers Warn of Losses

Retailers say cheaper raw milk has made deep price cuts possible.

Overview

  • Lidl’s nationwide price for a 250 g pack of standard butter dropped to €0.99 on Dec. 6, falling below €1 for the first time in about a decade.
  • Competitors including Norma and, according to industry reports, Aldi, Edeka, Rewe and Penny have moved to match the price, sharpening retail competition.
  • The shelf price has more than halved from about €2.39 earlier this year as market data show cheaper milk on the world market, increased deliveries to dairies and higher milk fat content.
  • Farmer representatives label the situation an economic disaster, noting farmgate payments have fallen to roughly €0.46–€0.50 per kg, below estimated production costs of about €0.535.
  • Lidl says it is passing on lower input costs and forgoing margin, while analysts point to butter’s role as a loss‑leading Eckprodukt in a highly concentrated grocery market.