Germany: The price war in the food retail sector is intensifying dramatically
While discounters are continuously driving down the prices of meat and sausage products, producer prices are becoming unbalanced. Particularly perplexing: beef is being offered at lower prices, even though producer prices for beef remain high.
Discount retailers Aldi, Lidl, and Norma, in particular, are engaged in an increasingly fierce price war. The focus is especially on sausage products and meat products, such as ground meat, a staple item. Lidl, for example, has already entered its fourth round of price reductions this year and has lowered prices on meat and sausage products by up to 50 cents per item. Norma is also advertising price reductions on sausage products, which are being offered at permanently lower prices.
Permanent discounts harm pig farmers
Short-term price promotions to stimulate demand during supply pressure are certainly justified. However, if prices are permanently reduced to ruinous levels, local pig farmers, who are currently operating well below profitability, will be left behind!
The price reductions don't just apply to pork products; various beef products are also being offered at lower prices. It's striking that producer prices for beef remain at an exceptionally high level or are even rising slightly – despite relatively stable cattle herds and significantly increased beef imports.
Quality from Germany simply cannot be achieved at the lowest price indefinitely!
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