Dairy Market Blog – 11th September, 2017
How high will butter prices go?
Severe shortages of butter have developed around Europe, especially for the food processing/food services trade, and prices have continued to lift beyond historical levels with little or no prospect of additional supplies for the short term – what with being past Northern Hemisphere peak, not yet at Southern Hemisphere’s, and with reports that the wet spring may be affecting volumes in New Zealand.
French bakeries have been vocal about the shortages and the price pressure, with reports of 10c price increases on croissants in many of them. Croissants are made with around 25% butter, so the impact is significant.
The shortages (and the price uplifts) appear less noticeable in the retail trade, where traders have reported resistance to wholesale and retail price increases.
From early May 2016 todate, average EU butter prices have increased from €2500/t to €6390 – a whopping 155% or 2.5 times increase.