Supermarket chain Lidl decreases butter price - butter market quotation significantly drops
The German retail sector has seen another round of price cuts for butter this year, with Lidl taking the lead in this latest move. The budget supermarket chain has announced a reduction in the price of a pack of German brand butter by 20 cents, bringing it down to €1.79 per 250 grams, effective today (15.9.).
This price drop follows a trend of falling butter prices on the stock exchange, where prices have decreased by approximately 20% in recent weeks. The butter futures for the delivery month of August on the Kempten Stock Exchange fell from €7,063 on August 1 to €5,583 on September 12.
The South German Butter and Cheese Exchange in Kempten also lowered the quotation for shaped brand butter last week by 25 cents per kg compared to the previous week. The quotation for loose brand butter was reduced by 20 cents per kg compared to the previous week, to €6.50 to €6.80 per kg.
This price decrease is putting pressure on dairy milk prices, as the lower utilization of milk fat through butter production means less demand for raw milk. The Kiel-based ife Institute for Food and Nutrition Economics calculated a milk raw material value of 47.9 cents/kg with 4% fat on the farm for August. For October, experts predict a milk raw material value of 40 cents/kg.
Lidl's price reduction for butter will take effect nationwide from Monday, September 15, 2025. Aldi Nord and Süd have followed suit, reducing the prices of comparable butter and butter products to match Lidl's new prices. Lidl is also discounting Irish butter, a vegan alternative, and two milk spreads.
Demand for loose brand butter appears to be good, with a significant amount of frozen product in circulation at reduced prices. However, the Stock Exchange Kempten has not provided specific information about any changes to its butter quotation. The Kiel exchange milk value is already down to 43.1 cents/kg for September.
The name of the person responsible for butter retail prices at Lidl is not publicly disclosed. As the butter price war heats up, it remains to be seen how other retailers will respond to these latest price cuts.
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