Dairy products are about to become more expensive than they have been for many years.Image: imageBROKER / Manfred Bail
There is no end in sight for price increases in Germany’s supermarkets. The war in Ukraine is driving up energy costs, disrupting supply chains and creating food shortages around the world. Consumers feel the direct effects of the war not only at the gas station, but also in the supermarket. All of the major German supermarket chains have made many of their products significantly more expensive in recent weeks. According to experts, cheese and butter in particular will soon become even more expensive.
Because dairies will probably get even less milk this year than the year before due to rising energy, feed and fertilizer costs, “predicts “Lebensmittelzeitung”. This is not only the case in Germany, but also in other countries in the EU, also in New Zealand and the US Milk could soon become a rare commodity all over the world, and not just in this country strong demand due to the current shortage of rapeseed and sunflower oil and the upcoming Easter holidays.
Due to the war, milk production is becoming more expensive and less affordable for many farms.Image: dpa center image / Patrick Pleul
And if demand increases but supply decreases, Consumers often anticipate rising prices. This is also shown by looking at the international price index for dairy products from the trading platform “Global Dairy Trade”. It is currently at the second highest level since 2013 and thus 22 percent above the previous year’s level.
Butter and cheese stocks are not big enough
After hamster purchases of sunflower and rapeseed oil are now Dairy products have become the focus of buyers, explains the Association of Bavarian Milk Producers (VMB). Consequently, the price of butter is currently above 7 euros per kilogram. On the supermarket shelf, a 250-gram piece of butter could be 25 cents more expensive in April and then cost 1.89 euros. In May, the price could rise to more than 2 euros and butter would then be more expensive than it has been for almost four years.
According to experts, there is also a risk of a notable increase in the price of cheese. There are already frequent supply bottlenecks because demand clearly exceeds supply. Stocks in cheese maturing warehouses are not large enough to meet the increased demand, reports the Kempten Stock Exchange, which regularly publishes updates on the German milk market.
Weekly grocery shopping will be even more expensive in the future: Due to rising costs in the wake of the Ukraine war, Aldi-Nord announced some massive price increases starting Monday. Just a few weeks ago, the discount store had already raised prices on around 400 items.