As a result of the Ukraine crisis, butter prices in Austria have recently risen enormously – the cost situation has now eased somewhat, but compared to our neighboring country Germany, price adjustments are lagging behind.
While butter prices in Austria have only recently begun to fall slightly, in Germany they are declining across the board. Various German discounters, but also supermarkets, lowered the prices on Wednesday for a quarter kilo pack of branded butter in the entry-level price range – from 1.99 to 1.59 euros. The 20 percent discount is not a special offer, but the new normal price, reports the dpa news agency.
In this country, only the Schärdinger brand of Austria’s largest dairy, Berglandmilch, has announced a 6 percent reduction in butter prices as of February. The price reduction should apply to all trading partners in Austria. And the trading partners also wanted to follow, Spar and Rewe also said.
Farmers: are at the mercy of dairies
Alternative farmer representatives of IG Milch criticized the fact that Berglandmilch announced in the media a reduction in the butter price of 6 percent, while the milk price for all producers was reduced by as much as 3.5 percent. You are at the mercy of the dairies. The discussion of the butter price in the media is irrelevant, said IG Milch representative Ewald Grünzweil of the APA on Tuesday.
One reason for the drop in Germany is that after the record milk prices achieved last year, raw milk production has noticeably increased again, said general director of the dairy industry association, Eckhard Heuser, according to dpa.
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.