The Battle of the Butter Dish. Stores offer discounts on butter, and the dairy industry is having problems

Other stores introduce discounts on butter. Although this is good news for customers, dairy cooperatives are not happy about it. In this matter, they appealed to the Minister of Agriculture, Henryk Kowalczyk, for help.

Data from the Ministry of Agriculture show that packaged butter prices in the first half of January decreased by about 30 percent. and were the lowest since October 2021. In addition, stores introduce promotions for the purchase of more than one stick of butter. Kaufland, Biedronka and Lidl have had or still have such discounts in recent days.

However, the declines in food prices that are visible for some goods do not mean a change in the trend. – We should not be guided by promotions for products, because discounters are forced to get rid of the goods lying in warehouses. Soon, companies will also face increases in energy and heating prices as well as changes in VAT, which will result in an increase in food prices – says Marcin Stradowski, partner at Foodcom SA in an interview with Strefa Biznesu

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Butter prices in the promotion hit the dairy industry?

However, the buttery battle over prices is not beneficial for farmers. For the last two years, butter prices have been at a good average European level, but have recently collapsed – says Waldemar Broś, president of the National Association of Dairy Cooperatives (KZSM) for And this is an unfavorable situation, because the costs of running a business have increased significantly due to inflation and rising heating and electricity bills.

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The dairy industry is therefore afraid of a market crash. At the end of January, she sent a letter to the Minister of Agriculture, Henryk Kowalczyk. Already on February 1, a meeting of a member of the government with representatives of the industry took place.

Dairymen point to the “drastic” deterioration of the situation on the market of dairy products in Poland and other countries of Central and Eastern Europe.

,, The symptoms of this dairy crisis are the slowdown in the possibility of selling outside the country and, consequently, lower prices of dairy products practically every day

– we read in a letter to Henryk Kowalczyk quoted by

The lower prices are due to the decreasing demand for dairy products. In such a situation, retail chains are pushing for wholesale price reductions. The pressure on the dairy industry is growing more and more.

Stores inflate margins, and farmers get nothing from it?

Waldemar Broś from KZSM notes that farmers are overlooked in terms of income, even though they are the first link in production.

,, Even at the best time for them, taking into account the prices of raw materials, butter should cost less than PLN 7. Meanwhile, in stores it was PLN 10-11. This margin has been added

– says Bros.

Dairymen would expect a specific price for the farmer and a specific price on the shelves, following the example of Germany.

,, We had to lower prices and would expect the chain to do the same. Let us not allow these declines in milk prices to lead to a decline in production.

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– said Czesław Cieśla, President of the Management Board of the Koło Dairy (OSM), quoted by “Forum Mleczarskie”, during a meeting of the dairy industry with Henryk Kowalczyk.

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