Butter prices fall in Germany, a good sign for falling food inflation in Europe

Published 2023년 6월 7일

Tridge summary

Butter prices in Germany have dropped by 30% since December, due to lower milk prices and reduced energy expenditure. This decrease in butter prices could be a sign of upcoming price drops in food across Europe, as falling costs of feed and energy are expected to impact other food products as well. In France, the butter price increase has been slight, but negotiations between manufacturers and distributors are anticipated to result in a price decline, reflecting the broader trend of lower costs.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

In Germany, the price of butter has fallen by 30% since December. And this, even as processed products continue to climb, as reported by the Financial Times. If this data may seem trivial for us French, it may hide the harbinger of a drop in inflation in food on a European scale. The price of German butter falls The main reason for this fall in the price of butter among our German neighbors is simple: milk is cheaper. Because feed prices for cows are falling and so is energy expenditure. Above all, Germany has a specificity: butter prices are renegotiated very regularly. Thus, the fall in the cost of raw materials can be seen almost in real time on a lump of German butter. A leading indicator therefore, and according to observers, this German market may reflect an overall drop in prices to come in Europe. German butter is even an "early indicator" of a future trend in other food products, according to the vice-president of global trade at Arla Foods, Thomas Carstensen, a butter ...

Source: Bfmtv