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Butter: corona-induced panic buying toxic for industry

March 12, 2020 12:59 PM, Der AUDITOR
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FRANKFURT/BRUSSELS. The consumers are stockpiling table butter and other dairy products in Germany. Although the retailers are ordering large volumes, the producers have lost out.

Producers miss out on golden opportunity

The producers have, in fact, missed a golden opportunity, as stockpiling only started shortly after lower prices were negotiated with the retailers. While the retailers are profiting from the sharp rise in consumer demand, the dairies are confronted with a mismatch between the low retail prices for table butter and a sharp rise in the prices for cream. Problem is that demand for cream, which is required for table butter production has surged. Traders have voiced their frustration over the effects of panic buying.


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