German grocers Aldi Süd and Norma have reportedly cut the prices of dairy products on their shelves by up to seven per cent due to an overproduction of milk in the country recently.
After an initial lowering in May, this move represents the second cut to dairy prices in recent months, sparking fresh problems for German farmers with milk prices now standing at 28 cent per litre.
Although there's been little change to milk production level in Germany during this period, external factors have played their part in the overproduction problem. The issue stems from factors including the Russian embargo, a fragile export market to Asia and the pricing policy of private label.
According to German magazine FAZ, German agriculture minister, Christian Schmidt, wants to extend German dairy exports ti new markets, citing the Middle East as having plenty of potential.
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Maike Baeumer. To subscribe to ESM: The European Supermarket Magazine, click here.
