Why are prices of groceries in Germany lower than in Serbia?

After the Serbian government capped the prices of basic groceries in Serbia, the journalist of Deutsche Welle, Nemanja Rujović, decided to check how much the same and other products cost in Germany and came to the conclusion that German consumers are better off than Serbian ones, also because average salaries in Germany are about six times higher.

He found out that sunflower cooking oil at Lidl in Bonn costs 1.39 euro (from 1.5 to 2 euro in Serbia), wheat flour 45 cents per kilo (from 54 to 79 cents in Serbia), sugar 79 cents (from 67 to 80 cents in Serbia), and long-life milk 80 cents (in Serbia from 72 cents to 1 euro). A kilogram of pork can be bought for 6.99 euros a kilo (in Serbia it costs 5 euros more).

“It would probably be even cheaper if I went to Aldi, Penny, Neto or other discount supermarkets,” says Rujević and adds: “But even so, as you can see, the German consumer is much better off if we take into account that the average salary in Germany is about six times higher (than in Serbia).”

But why is it so cheap in Germany? “Because of the supermarket chains like Aldi and Lidl. The Germans invented discount supermarkets,” says Rujović, adding that they have enormous market power, offer lots of products and dictate the prices. “Producers who want to be on their supplier list have to meet very strict quality and quantity requirements on delivery. Whoever doesn’t is out and the producers can’t afford that. That’s why they have to compromise on their prices,” he says.

Another reason why it is so cheap to shop in Germany is that Germans are practical and unsophisticated when it comes to food: “In France, food has a higher value, simply because the French have a different relationship with food. That’s why they are used to higher prices there,” concludes the expert.

(N1, 08.12.2021)


This post is also available in: Italiano

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