The results of the mapping for the course of prices in milk, cheese and yogurt, carried out by the Competition Commission.

This is stated in a note included in the Competition Commission’s newsletter, it concerns the latest developments in food and is signed by Athanasios Stavrakoudis:

“…From January 2023 (December 2022 for some countries) a steady de-escalation of milk prices is observed. The available data (up to June 2023) show that producer prices are either approaching the corresponding June 2022 prices (Italy, Hungary) or are already at lower levels (Greece, Romania, Sweden). One would therefore expect the price reduction to be gradually passed on from the producer to the consumer. This has not yet been observed. It is known from many previous studies in other markets that such price transfer is not observed at the same speed (prices rise quickly but fall slowly) nor to the same extent (prices rise a lot but fall less). However, the maintenance of high retail prices seems to be incompatible with neither the cost of raw materials nor the cost of energy (which has also decreased in 2023).

The Competition Commission has deepened the specific analysis which is based on public data by initiating a process of mapping the markets of fresh milk as well as cheese (feta/gouda) and yogurt, with the aim of effectively implementing the provisions of Law 3959/2011, and the which is in the completion phase”.

The latest developments in retail milk prices – Greece’s position

As underlined in the same note from the Commission, the retail prices of one liter of fresh milk in Europe show significant variations, which are partly justified by the difference in quality. It is noted that the prices presented are not completely comparable since we do not have the quality characteristics of the milk offered, however the comparative presentation below offers an indication of the ability of consumers to obtain milk from supermarkets of independent quality.

In particular, the fresh milk prices for low-fat (1.5%-1.8%) and whole (3.5%) cow’s milk from the e-shops of the largest supermarkets in selected European countries are presented. It is noted that where possible the prices were taken from the e-shops in more than one store in each country and the prices in local currency were converted to euros for non-eurozone countries. As the specific product is not homogeneous, it was chosen to present the highest (max) and lowest price (min) of each category in order to identify the choices that consumers have in each country. The data show that for the low-fat fresh cow’s milk category, the price range was, on 7/26/2023, at 0.49 euros the lowest and at 2.39 euros the highest, while for the fresh whole cow’s milk category the price range was formed, at 0.85 euros the lowest and at 2.29 euros the highest.

A related graph shows the price of fresh low-fat cow’s milk ranked by lowest price and in relation to the level of inflation in June 2023 (latest data available from Eurostat). For cases where there were prices for more than one supermarket, the average price is shown. The ranking shows that in Greece the price is 1.12 euros. That is, the ranking shows that Greece (1.12 euros) is the third most expensive country after Estonia (1.39 euros) and Sweden (1.21 euros). While in terms of the highest price for this category, Greece is the second most expensive country (2.22 euros), after Estonia (2.39 euros).

Regarding price increases, it is noted that the level of inflation (June 2023) in fresh whole milk is lower in Greece (13.2%) both compared to Estonia (25.7%) and Sweden (19, 2%). The highest inflation in the price of fresh low-fat cow’s milk is found in Portugal (27.9%), although the price of milk is ranked 10th.

For the price of fresh, whole milk, the ranking for the lowest price in relation to June 2023 inflation shows that Greece (1.12 euros) is in seventh place after Lithuania (1.45 euros), Finland (1, 35 euros), Estonia (1.30 euros), Sweden (1.23 euros), France (1.2 euros), Austria (1.19 euros). Regarding the highest price for this category, Greece is the second most expensive country (2.22 euros) with Lithuania first (2.25 euros). In addition, it is noted that the level of inflation for fresh whole milk in June 2023 was 12.8%, in Lithuania 10%, and in Sweden 9.5%. The highest inflation is found in Estonia with 30.1%.

Finally, a graph is presented for 2022, for three categories (GDP, Food, and Milk/Cheese/Eggs) based on the Purchasing Power Parities index.

This index converts different currencies into a common currency and, in the process of conversion, equalizes their purchasing power by eliminating differences in price levels between those countries.

According to Eurostat’s methodology, it follows that in the year 2022, in terms of GDP, when the Purchasing Power Parity index in the EU equals 1, Greece is below the European average, i.e. at 0.8, while on the contrary both for the category food and for the Milk-Cheese-Eggs category the index is above the European average.

As the Competition Commission notes, the above impression is photographic, for the price of milk in Greece and in other countries without the prices having been adjusted based on the purchasing power and cost of living of consumers in each country and therefore the research has limitations. However, it is noted that the Commission has deepened the research on the course of prices in milk, cheese and yogurt as it has started, among other products, mapping the specific markets from February 2023, in collaboration with special experts from academia and the head committee’s technology.

In the mapping, it is noted, the conditions of competition will be reflected in terms of the course of prices in each market and the results are expected soon.