That’s why Aldi is now quietly lowering the prices for organic milk

Business food inflation

That’s why Aldi is now quietly lowering the prices for organic milk

Status: 7:14 p.m | Reading time: 2 minutes

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The price reduction has created a new milk problem for Aldi

Source: dpa/Rolf Vennenbernd

60 cents more than for normal milk – Aldi’s price jump for organic milk outraged organic farmers in particular. Because there are only two cents more for organic quality. But now the discounter has quietly lowered the prices.

Dhe criticism from the organic sector was great last month when Aldi set the price for organic milk at a record-breaking 1.69 euros – a whopping 60 cents more than for conventionally produced milk. Because the price difference does not reflect the milk price that the farmers receive. Because there is only a two cent surcharge for organic quality. The dairies feared that they would no longer be able to get rid of their organic milk.

Apparently, this criticism and above all the reluctance of customers to buy are having an effect. Aldi has quietly lowered the price of organic milk: to 1.45 euros. The Aldi prices in the basic range are important for the entire industry: the large supermarket chains usually follow the price leader Aldi for their entry-level brands such as “Ja!” (Rewe) and “Gut & Billig” (Edeka).

However, the current price reduction for organic milk has apparently not yet reached everyone. Rewe currently charges 1.69 euros for its own brand organic milk.

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It remains to be seen whether the new price structure will last. Because there is a new problem: Aldi organic milk now costs just as much as pasture milk, which is actually priced between conventional and organic milk.

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This usual price hierarchy was previously the unofficial justification for the enormously high organic milk price. “I suspect they currently want to test the price limits for organic milk,” said the President of the Bioland producer association, Jan Plagge, in an interview with WELT AM SONNTAG last month.

Production costs for organic milk are currently unusually low

On Thursday, Aldi said on request that its prices “basically follow the market principle of supply and demand”. In principle, the discounter does not explain individual purchase and sales prices.

But one thing is clear: the production costs for organic milk are currently unusually low in relation to conventional agriculture. Because organic farmers hardly feed them concentrated feed. But that has become extremely expensive due to the upheavals from the Ukraine war. High price differences are therefore not fundamentally justified.

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The article is in German

Tags: Aldi quietly lowering prices organic milk

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