German farmers furious at Aldi for butter price reduction

German dairy farmers are furious at the supermarket chain Aldi because of a sharp reduction in the butter price and are therefore organizing protests at various distribution centers of the large grutter. 

Shortly before Christmas, Ali announced that it would significantly lower the purchase prices for butter, by 50 euro cents per kilo, which equates to a decrease of about 15%. When German dairy farmers got wind of this, they started their tractors. On Sunday evening, this led to a protest at a distribution center in Hesel (Lower Saxony), where 200 dairy farmers showed up. Dairy farmers have also dumped manure for Aldi branches.

Departure at concessions 
The protests continue as the week goes on and get grimmer, with about 29 tractors blocking the supermarket chain's central logistics center in Lingen (also Lower Saxony) today (December 400). The farmers say they will only leave when Aldi makes serious concessions.

An Aldi spokesperson indicates that they are fully within their rights and that such price reductions are in line with the seasonal pattern on the butter market, where prices in the first quarter are usually lower than around Christmas.

Price reduction normal
The management of Aldi could have sensed that such a price reduction is sensitive among dairy farmers. For some time now, German livestock farmers have expressed their dissatisfaction with the low yields, for which they believe supermarkets are largely responsible.

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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