Kerrygold butter is sold all across Ireland for more than 65% of the cost it is being sold in Berlin, Germany.
This week Lidl in Berlin has been selling 250g of Kerrygold for €1.99 where as in Irish supermarkets has been selling 227g for €2.99.
According to a report in the Irish Times, the Irish Creamery Milk Suppliers Association (ICMSA), who represent dairy farmers in Ireland said that they had no insight into how retail pricing works either in Ireland or Germany.
“Dairy farmers are effectively at the mercy of those further along the supply chain. No one in Ireland, or the EU for that matter, seems particularly bothered to really go in and have a look at margins along the supply chain or how retailers arrive at their price to the consumers," ICMSA president said.
Ornua, the co-op which makes and sells Kerrygold in both countries, said while they make the products, it is up to the retailer for how they price them.
A spokeswoman for Lidl told the Irish Times that the retailer “regularly offers various price promotions across countries on butter as part of its promotional strategy”.
Kerrygold is extremely popular in Germany and is their market lead butter product.
The Irish butter is typically used for promotions with the €1.99 being used to gain attraction towards the supermarket.
