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Lidl’s €1.49 Butter Move Sets Off New Price War in Germany

A milk glut is lowering raw costs, letting discounters push private-label prices down, pressuring competitors to follow.

Overview

  • Lidl set Milbona Deutsche Markenbutter (250g) at €1.49 effective Sept. 26, its fourth reduction with a 16% cut in the latest step.
  • Aldi Nord and Süd, Rewe, Edeka, Kaufland, Penny and Netto lowered prices after Lidl’s late‑September move.
  • Some butter-type spreads show steeper declines, with Milbona Sødergården Mischstreichfett dropping from €2.39 in 2024 to €1.39 now.
  • The latest round of reductions stems from high milk volumes that have pushed down input costs in the dairy supply chain.
  • Producers and milk farmers are under growing pressure as revenues fall even as consumers benefit from cheaper shelf prices.