Dairy products could become more expensive: consumers are partly to blame

Milk prices are expected to rise again in the summer.

Milk prices are expected to rise again in the summer.Image: Getty Images North America/Anna Moneymaker

Sunflower oil, cereals, cucumbers and tomatoes: After the rise in prices of various foods in recent weeks, now the next price increase seems imminent: dairy products are now affected.

The price of milk in Germany has been rising rapidly for almost a year. According to the FAZ, this is mainly due to the effects of the weather and the increased costs of fertilizers, feed and energy, which generally resulted in lower milk production. Adding to the shortage was the war in Ukraine, which caused prices to rise again.

Butter and milk prices rise

In March 2022, Aldi has already increased the cost of a liter of milk from 79 to 88 cents in the lowest price range. However, Eckhard Heuser, general manager of the dairy industry association, told the Handelsblatt that consumers “have only achieved part of the price increases” so far. Therefore, the higher prices should not reach consumers until the summer.

According to Heuser, the price per liter should “definitely exceed the euro”., even with butter expect ten cents more per piece. Yogurt prices could also rise to a similar extent. The pace of price changes has also changed, as many dairies are said to have switched to floating contracts, which should cause the price to go up and down automatically.

Hamsters are partly to blame for consumers

There are many reasons for the higher prices, but according to Heuser they are also related to consumer behaviour. Hamsters are also said to play a role in driving up prices., people would stock up on milk and freeze butter. Manufacturers do the same thing by stocking up on cheese, butter and milk so they can continue to deliver.

“Consumers are freezing butter and stocking up on UHT milk. But food manufacturers are also hoarding. They are stocking more milk, butter and cheese so they can always deliver. This shortage has led to relatively steep price increases.”

Eckhard Heuser, General Manager of the Dairy Industry Association

Heuser also attributes the shortage to hamsters, since Germany produces more milk than it consumes. According to actually “enough milk there”but could still be in short supply locally due to hamster purchases.

but there too Margins for dairy farmers are increasing Otherwise, the profession could become more attractive and the offer even greater, which could cause prices to fall again.


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