Butter cheaper than it has been for a long time - farmers sound the alarm

Faced with the sharp drop in butter prices, Saxony's farmers are now also sounding the alarm. "We naturally condemn the fact that such important foodstuffs are being sold off at these prices," said Diana Henke, Managing Director of the Saxon State Farmers' Association.

Butter is currently cheaper than it has been for a long time. Retail chains recently reduced prices again. A 250-gram piece of own-brand German butter now costs less than one euro. The reason for this is the lower world market price for milk. More milk was recently delivered to dairies than in the same period last year, and the fat content has also increased.

Budget butter as a lure in the price war

Henke made it clear that, in her view, it is above all the tough competition in retail that is exacerbating price pressure. "Lidl and Aldi are luring customers into their stores with cheap butter prices." The development is being observed "extremely skeptically". If the trend continues, the association will position itself at state and national level at the upcoming food fair - the Green Week - and seek talks with politicians and retailers.

Representatives of other state farmers' associations had already voiced fierce criticism. Thuringia's farmers' president Klaus Wagner spoke of a ruinous development. Dairy farms could not live on butter prices of just under one euro, he said. The Mecklenburg-Western Pomerania Farmers' Association expressed similar sentiments, warning of a dangerous gamble with supply security.

Milk price below production costs - investments on the brink

According to the association, the milk price paid out was recently around 46 cents per kilo of raw milk - and therefore below production costs. Farmers' representatives are warning that many farms will no longer be able to make the necessary investments.

According to the state association, no protests are currently planned in Saxony despite the precarious situation. Instead, the association is focusing on political talks. Although the relationship with food retailers is divided, the market is needed, according to Henke.