Farmers in Germany staged tractor protests on Monday against low milk and butter prices set by discount retailers, accusing supermarkets of driving prices down to unsustainable levels.
Police counted around 140 vehicles outside the headquarters of supermarket chain Lidl in the southwestern town of Bad Wimpfen, while the farmers’ group said up to 250 tractors took part.
Butter prices in Germany are currently at their lowest level in years, after retail chains recently cut prices again.
The prices for butter, milk, and cheese are falling worldwide, analysts say.
In Germany, a 250-gram pack of German-branded butter sold under retailers’ own labels now costs less than €1 (R19.73).
Dairies have received more milk than in the same period last year, while fat content has also risen, contributing to an oversupply that is outpacing demand for butter.
Farmers accuse Lidl
German farmers’ representatives warn that many operations can no longer afford necessary investments under current pricing conditions.
In an online petition, farmers accused Lidl of “dumping” butter prices.
Tractor protests also took place outside a Lidl logistics hub in Radeburg, eastern Germany, and at the company’s central warehouse in the northwestern town of Cloppenburg.
In Wasbek, farmers from the northern state of Schleswig-Holstein continued a vigil outside a distribution centre to protest what they described as dumping prices for butter.
Lidl said it understood farmers’ concerns but described the price cuts as a necessary response to exceptional conditions in the raw materials market.
“Since September, we have seen a significant oversupply of raw milk compared to last year’s levels. If these quantities are not sold, there is a risk of an even sharper price drop,” the discount retailer announced. — dpa
