Butter prices in the EU have increased by 40% since the beginning of the year

Futures for wholesale butter in the European Union have risen by 49.5% since the beginning of this year, reaching a historic high of €8,150 per ton in September. As of November 11, a ton of butter on the European Energy Exchange was trading for 7,850 euros. This is evidenced by data from Trading Economics.

As noted, the exchange price increase also affected the retail markets of the EU countries. In Poland, butter has risen in price by 40% since the beginning of the year to 8 zlotys for a standard package, and on the eve of the Christmas holidays, we can expect further growth to 10 zlotys.

In Germany, the price increase was 39.7% since the beginning of the year and reached a record level: A 250-gram package of butter costs from 2.39 euros in supermarkets and discounters.

The rise in butter prices was caused by a decline in milk production in Europe. The problem was the drought, which reduced the availability of feed, which in turn led to a decrease in cow productivity.

In addition, some dairy herds in Europe were also affected by the bluetongue epidemic, which not only limited milk production but also forced farmers to reduce their herds in some cases.

Another factor that contributed to the rise in prices is the rise in electricity and transportation costs in Europe, which leads to higher prices at all stages of production.

According to the Polish edition of money.pl, the problem could be partially solved by butter supplies from Ukraine if there were no difficulties with the export of Ukrainian agricultural products.

As reported, butter imports to Ukraine in the first half of October increased by 76% compared to the same period in September.

For 10 months of 2024, Ukraine’s trade turnover amounted to $92 billion. Thus, in January-October, Ukraine imported goods worth $57.4 billion, and exported goods worth $34.6 billion.

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Tags: EU, prices, butter