Germany works less for butter
The dairy industry association of Lower Saxony (LVN) has drawn a comparison between wage developments and the price development of foodstuffs – with increasing wages, less money is being spent on food. While German workers in 1960 worked 39 minutes for a 250g piece of butter, it was only four minutes in 2009, according to data from the Institute of the German Economy. In other words, consumer prices for butter have risen significantly more moderately in relation to wage increases.
Efficiency gains, the innovative power in agriculture and the processing industry form important factors for the prosperity of society. The continuous improvement process throughout the entire value chain is a guarantee for the safe and quality care of the population with important basic foods.
While wages have continuously increased, the income situation for dairy products is constantly fluctuating, claims LVN. In many cases, these fluctuations, especially in low-price phases, impacted income on dairy farms.
Seen over a long period of time, more moderate prices of dairy products reached the market often through cost savings and the constant pressure to improve efficiency in dairies and producers. As a result, less specialised companies has been forced to adjust their operating structures.
Thanks to positive scientific nutritional studies, milk fats such as butter are experiencing a new appreciation, as consumers increasingly resort to regional, natural and high-quality kitchens, or butter-based mixed fats. Milk fat in the form of butter and mixed fats has replaced margarine as the favourite batter of Germans.
The demand for milk fat, despite market fluctuations, means that the price has risen in recent years. In 1950 the consumer paid 71 cents for a 250g piece of butter. In 2000 he/she paid 95 cents and these days around €1.99 is paid for the butter.
However, butter is only now on the same price level as mixed fats. Although they are very high priced compared to butter, they have established themselves on the market (prices between € 1.49-1.89 for 250g).
The naturalness and the nutritional physiological value of milk fat is now undisputed, the LVN states that finally butter is getting the price to which it is entitled. This is an appropriate price that will match the real value of sustainable production and production.
