Both the discounter Aldi and the grocer Kaufland are drastically reducing their prices for butter. From now on, a 250 gram pack costs only 1.59 euros. The price reduction has also startled the competition.
With the beginning of the new month, the discounter Aldi lowers the price for a 250 gram pack of butter. Consumers now save 40 cents. As of today, a packet of the Milsani brand will only cost 1.59 euros instead of 1.99 euros at Aldi Nord and Aldi Süd, as the company announces on its website.
The dealer is thus depressing the level of a year ago. A year ago, the own-brand butter was offered for 1.65. Aldi customers last had to pay the highest price in May last year at 2.29 euros, before the discounter offered butter again for less than two euros shortly before Christmas.
The current price reduction of 20 percent has also startled the competition. Kaufland, for example, has already announced that it will reduce the prices of around a dozen butter items by up to 90 cents. Industry experts expect that Rewe and Edeka will soon follow suit and reduce prices to the same extent.
According to the “Lebensmittelzeitung”, retailers are reacting to falling milk prices with price reductions. At the beginning of the year, the industry was already saying that the sharp rise in prices for milk and dairy products had peaked. The very high level will not be maintained, but the price level will remain significantly higher than two years ago, said the managing director of the North Rhine-Westphalia State Dairy Association, Rudolf Schmid.
The fact that prices are slipping right now has to do with the rhythm of price negotiations in the dairy industry. The old contracts expired at the end of January, and in the new contracts the dealers were able to agree on significantly lower prices, which make the current price reductions possible. According to the company, the current butter price at Aldi should apply “until further notice”.
