After rapid price growth, milk could become cheaper again in Germany this year. Due to high prices, milk consumption has fallen in Germany. The drop in milk prices could also affect the prices of products such as butter or yogurt, German media write.

The Dairy Industry Association assumes that the producer prices farmers receive for deliveries to dairies will not remain at the record level of 60 cents per kilogram reached at the end of 2022.

Price drop in supermarkets

“On the one hand, farmers delivered more milk, on the other hand demand fell due to high prices,” Peter Stahl, president of the Dairy Industry Association (MIV), told German media.

“This will have consequences for raw milk prices, there is no doubt,” Stahl added.

How much consumers pay for milk, butter, cheese and other dairy products in retail does not depend only on producer prices, but also on prices in the supermarket chain and other factors.

However, rises and falls in producer prices are usually also reflected in selling prices in supermarkets.

Milk consumption in Germany has fallen

According to data from the said Association, the average producer price of milk during 2022 reached a new record level of 53 cents per kilogram.

Unlike retail, producer prices of milk are expressed in kilograms.

According to MIV, one liter corresponds to 1.03 kilograms, because milk is slightly heavier than water due to fat and other ingredients.

Stahl claims that milk consumption in Germany has fallen due to high prices. The more expensive organic milk was bought the least.

Milk consumption in Germany has fallen in recent years. According to data from the German Federal Office for Agriculture and Food, in 2021 it amounted to almost 48 kilograms per capita. The industry assumes that the negative trend will continue.

Milk prices in stores rose by almost 20-30 cents, as did the prices of yogurt and other dairy products.

The biggest price increase was recorded for butter, almost 70 percent. Many replaced butter with the much cheaper alternative, margarine, German media state.

Source: fenix-magazin.de