Sales in butcher shops are falling, while at the same time consumer costs are skyrocketing: Since the beginning of the year, meat prices have risen twice as fast as consumer prices overall. Aldi is now heralding the trend reversal.
Surprise in the refrigerated section: While most products in supermarkets and discount stores are becoming more and more expensive, meat prices are just starting to slide. The discounter Aldi reduced numerous fresh meat products from mixed minced meat to beef steak. The retailer is thus passing on falling purchase prices to customers and making a contribution to reducing inflation, said a company spokesman on behalf of Aldi Nord and Aldi Süd in Essen.
Aldi's step is also likely to have an impact on large parts of the rest of the trade. Because many competitors, especially in the entry-level price range, are still based on the inventor of the discount. "After there was a significant increase in the market at the beginning of the year, we are currently seeing base prices falling again, especially for pork," reported Aldi. This is not least due to the still high overcapacities in Germany.
There are a number of reasons for the overcapacity in 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 per year. Instead, business with vegan and vegetarian meat substitutes is booming.
In addition, the high inflation is apparently spoiling the desire for sausages, chops and steaks for many people at the moment. "Despite the good barbecue weather, demand is not really picking up yet," observed the agricultural information service AMI. According to a representative Forsa survey published a few weeks ago, 42 percent of people in Germany have reduced their meat and fish consumption in order to cook more economically. In addition, the previously flourishing export business of the German meat industry is still suffering from the outbreak of African swine fever.
The "Bild" newspaper reported that the price reduction could now also benefit farmers who are stuck with their products. These have already called on retailers to reduce overcapacity and thus stabilize market prices - if necessary with lower prices. Otherwise, consumers would "reach for the cheap segment" more and more often, explained the Secretary General of the Farmers' Association, Bernhard Krüsken. In 2021, butchers made less sales than in previous years - the value fell to its lowest level since 1994.
In the first five months of the year, the prices for meat and sausages rose significantly more than consumer prices overall. In May, the price of meat and meat products was 16.5 percent compared to the previous year, as reported by the Federal Statistical Office in Wiesbaden. That was double the overall inflation rate of 7.9 percent - overall food prices rose 11.1 percent. According to the statistics, poultry prices rose the most in May, at almost 24 percent.
The price reductions are definitely noticeable in the wallet: the price for 500 grams of mixed minced meat fell from 4.59 euros to 3.99 euros. Bratwurst from pork in the 400 gram pack was reduced from 3.49 to 2.99 euros. The price for a kilo of beef steaks fell from 27.99 euros to 24.99 euros.
