The discount chains (Aldi, Lidl et al) in Germany have over 50% of the grocery market and they pretty much set the market price for commodities.
Milk, for example.
A litre of low fat (1.5%) milk retails for €0.48 at Aldi. (3.5% organic goes for €0.89.)
€0.27 a litre with 4.3% fat content.
They reckon it costs €0.40 to produce and the only reason they’re not starving or being forced to sell the Mercedes is because they’re subsidised like crazy.
(Not enough, of course…)
Some milk factories and co-ops, though, have come up with a smart idea:
Instead of wailing and moaning (OK, they’re doing THAT too….) they’ve created a premium brand called “Bauernmilch” (“Milk from the farmyard”) with evocative packaging, retro typeface and a good price point (€0.99) that they’re marketing through selected supermarkets, with a big chunk of the revenue going straight to the farmers.
I’ll buy it.
I mean, I wouldn’t want Mercedes to go down the gurgler just because the farmers can’t afford to buy their cars, now would I…?