By: Mirco De Vincenzi and Ester Venturelli
The price of Butter in European Union resumed an increasing trend following the decline in production (-4.7% in the January-March period compared to the same period in 2023). In particular in Germany, the leading European producer of butter, the supply of fats is decreasing due to the typical seasonal slowdown in milk production, combined with a year-on-year slowdown in production in the first quarter (-4.1%) and to a lower percentage of fat in milk compared to the same period of the previous year.
In addition to weak supply, this period in the EU is characterized by a recovery in demand for fats associated with the consumption of ice cream, asparagus seasoned with butter and strawberries with cream. This helps create a disequilibrium in the market that supports prices.
CLAL.it – Fat contained in milk deliveries in Germany
Other end of the world. In New Zeland milk deliveries recorded a slowdown (-0.7% trend between January and April 2024), largely offset by good quality. Here, the availability of fat is slightly negative compared to last year and this is also reflected in the lower quantities of butter offered at the GDT in this first part of the year, so much so that the butter appreciated at the last auction on 4 June further than the previous session (+1.7%).
In the USA, however, an opposite situation is observed with an abundance of supply given by greater production which also allows stocks to increase (in April warehouses were at +9% on the same period of 2023, up by 13.9% compared to March 2024). However, even in the USA the price of butter is recording a growth trend, probably influenced by the dynamics underway in other production areas. To this must also be added a possible influence of the lower supply of Olive Oil recorded in the last two years, which has inflamed prices in the sector, cooling consumption.
CLAL.it – Comparison of Butter prices
