Home Economy Rising prices led to a reduction in sales of dairy products

Rising prices led to a reduction in sales of dairy products

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Rising prices led to a reduction in sales of dairy products

The collapse of the dairy market was caused by a jump price increaseat the same time, no de-escalation of prices is visible, despite the pressure exerted by dairy industry reduce producer prices. After all, the latter, despite the significant price increase they received in 2022, were unable to respond to a significant percentage of the extremely increased production costs due to a sharp increase in feed and energy prices, as a result of which they supplied less milk. and many drove the animals, raising them, to the slaughter.

According to data from research firm IRIWhere “K” represents todaysales white milk, including private label products, were formed in 2022 at 313.34 million euros, registering an increase of 5.5%, while sales, however, fell by 6.4% at the same time, as the average price per liter increased by 12.8% to 1.57 euros from 1.39 euros in 2021. A similar picture prevailed in the yogurt category, with turnover of around €263 million, up 5.2% compared to 2021, but sales falling 6%. It is worth noting that, on average, yogurt prices have risen by 11.8%, with the price per kilogram set at EUR 4.46 in 2022 from EUR 3.99 in 2021.

The average price of milk per liter increased by 12.8% to 1.57 euros from 1.39 euros in 2021.

However, where prices were beaten, all records were in cheeses, and the largest price increase is observed in the cut and exceeds 22%! To better understand what is happening in the cheese category, the price of “white” cheese in 2022 was higher than that of feta in 2021. Thus, if in 2021 a kilogram of feta had an average price of 8.06 euros, then in 2022 it was 9.85 euros, while the average price of “white” cheese was 9.33 euros / kg in 2022 compared to 7 .92 euro/kg in 2021, which also indicates a sharp increase of 17.8%. Both categories saw declines in sales, with feta sales doubling that of white cheese (8.8% vs. 4.4%), and consumers apparently looking for cheaper options.

According to the IRI, total cheese sales in supermarkets in 2022 were set at €850.08 million, up 11.4% from 2021, with total sales down 5.1%. The largest drop in sales was recorded in gruyère, 11.4%, which is directly related to the fact that this is the category with the highest average price, 12.77 euros/kg from 11.02 euros/kg in 2021. focus in 2022 as two specific products were in short supply in spring and autumn due to reduced raw materials. In the first case, there were many breeders who led their animals to the slaughter, as they could not cover the increased costs of breeding, and in the second case, the shortage was caused by the withdrawal of large quantities of sheep’s milk by large dairy enterprises for their own needs. needs for which they charged higher prices, with the result that smaller units could not find raw materials at a price they could cover.

According to ELGO-DIMITRA, 640,530 tons of cow’s milk were supplied in 2022, which is 4.1% less than in 2021. In fact, there were 2,217 producers who delivered milk in 2022 compared to 2,355 in 2021, i.e. 6% less than in 2021 . On the other hand, producer prices for cow’s milk increased by an average of 31.12%, reaching 52 euros/kg, which is a record price for at least the last 10 years. The amount of sheep milk delivered in 2022 has finally increased compared to 2021 and reached 713,851 tons from 710,328 tons in 2020. However, the number of manufacturers has dropped to 40,140 from 40,667 in 2021. it was set at 1.25 euros per litre, which led to a very large increase in the price of feta, as well as many other homemade cheeses that use sheep’s milk. The average price of goat milk increased by 28.61%, which also contributed to a significant rise in the price of cheese.

Author: Dimitra Manifava

Source: Kathimerini

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