Germany: Aldi surprisingly lowers prices for meat
Updated: Aug 31, 2022
Discount Retail Chain Aldi Germany (German family owned) has reduced numerous fresh meat products from mixed minced meat to beef steak.
The discounter passes on falling purchasing prices to customers and made a contribution to the weakening of inflation, said a company spokesman on behalf of Aldi Nord and Aldi Süd in Essen about the price reduction, about which the "Bild" newspaper had previously reported. Aldi's step is also likely to have an impact on large parts of the other trade. Because many competitors are still based on the inventor of the discount.
Germany's largest supermarket chain Edeka announced accordingly: "We also value a good price-performance ratio and will adapt the prices for some meat products to the new market situation in the coming days." Similarly, the discounter Netto belonging to the Edeka Group commented. The competitor Rewe said: "We are constantly in discussions with our suppliers in terms of cost situation and market development and of course pass on possible price reductions directly to our customers."
Pound of minced meat for less than four euros
Recently, the prices for meat and sausage had even increased more than that for food as a whole. In May, the inflation for meat and meat products was 16.5 percent compared to the previous year, as the Federal Statistical Office announced. That was twice as high as the inflation rate of 7.9 percent. 11.1 percent more was due for food in May.
The price cuts are noticeable in the wallet in the barbecue season: the price for 500 grams of mixed minced meat dropped from Aldi from 4.59 euros (US$4.7) to 3.99 euros (US$4.1). Bratwurst from the pig in the 400 gram pack was reduced from 3.49 (US$3.59) to 2.99 euros (US$3.1). The price for a kilo of beef steaks fell from 27.99 euros (US$28.8) to 24.99 euros US$25.7).
The upward trend in the meat prices seems to be broken. "After there was initially a significant increase in the market at the beginning of the year, we are currently seeing falling basic prices, especially in pork," said Aldi. This is not least due to the still high overcapacity in Germany.
There are a number of reasons for the large range of meat production. Meat consumption in Germany has been declining for some time. According to the Federal Agency for Agriculture and Food, it was 55 kilograms last year. Ten years earlier it was 7.8 kilograms more per person and year. Instead, the business with vegan and vegetarian meat replacement products is booming.
In addition, the high inflation apparently spoils the desire for sausage, chops and steaks. "Despite the good barbecue weather, the demand does not really get going," the AMI agricultural information service observed. After a representative Forsa survey published a few weeks ago, 42 percent of people in Germany reduced their meat and fish consumption to cook more economically.
In addition, the former flourishing export business of the German meat industry still suffers from the outbreak of the African swine plague.
See here for more: https://www.spiegel.de/wirtschaft/unternehmen/lebensmittelpreise-aldi-senkt-ueberraschend-preise-fuer-fleisch-a-6c5a9cd1-d3da-4d9b-8d78-da7af0f76f8d