The Polish Office of Competition and Consumer Protection (UOKiK) has investigated claims that discount retailers Biedronka and Lidl engaged in unfair competition through extremely low butter prices. The regulator concluded that there is no evidence the chains broke the law.

The investigation followed a complaint in May from the KZRSS "Społem" union, which alleged the discounters sold butter below purchase costs, using their market advantage to distort competition. An anonymous whistleblower also filed a report. The low prices, which in some promotions reached approximately 90 gr per block, also drew complaints from Czech producers and retailers.

In response to the allegations, UOKiK stated:

"Price reductions are primarily part of intense price competition between networks. At this stage, there is also no basis to suspect that the observed prices are the result of a price conspiracy."

The regulator noted that selling goods below average purchase costs does not necessarily constitute a violation, particularly when promotions are limited by quantity, time, or specific conditions. UOKiK added that it is not a price-regulating body and can only react if there is suspicion of practices that limit competition or exploit contractual advantages, which were not found in this case.

Industry figures expressed different views on the pricing trends. Małgorzata Cebelińska, Vice President of SM Mlekpol, argued that selling basic dairy products below actual production costs could mislead consumers and upset market balance. Jakub Olipra, senior economist at Credit Agricole, suggested that when considering production and distribution, a block of butter should cost between 5 and 6 zł, rather than 2 zł.

Olipra warned that prices could rise to 7-8 zł per block next year due to factors including:

• Lower milk supply caused by heatwaves and heat stress in animals.
• Reduced availability of fodder.
• The delayed impact of high fertiliser prices.