The price fluctuations in butter continue. The reasons include low milk quantities and too little fat in raw milk.
The price of butter has recently risen, and consumers may soon have to dig even deeper into their pockets. Industry associations confirmed this to the German Press Agency. “We are currently seeing very high block butter prices in the official quotations, like never before,” said the managing director of the dairy industry association, Björn Börgermann.
He cited smaller quantities of milk supplied by farmers and a lower fat content in raw milk as reasons. Due to high demand for other dairy products such as cheese, less fat was available for making butter. In addition, significantly less butter was imported. The “Lebensmittel Zeitung” had previously reported on this.
The price of butter has already risen significantly in recent months. In July, the spread cost almost 21 percent more than a year earlier. According to Börgermann, it is not possible to say what price consumers will now have to pay and when. “The price is determined by supply and demand, and the retail price is ultimately decided by the food retail trade.” Retailers were reticent to comment on possible price increases. The shortage of value-determining raw materials has a fundamental impact on calculations in production and sales, said Philipp Hennerkes, Managing Director of the Federal Association of German Food Retailers (BVLH). Aldi Nord, Lidl and Rewe did not want to comment on the development of prices.
“Prices have repeatedly fallen and risen”
According to the German Dairy Farmers’ Association (BDM), wholesale prices for block butter have already exceeded the 2022 high of up to 7.95 euros per kilo. A corresponding increase is also to be expected for packaged butter after the end of the holiday season, said spokesman Hans Foldenauer. The figures relate to the prices paid by trading companies. Consumers must expect that price increases from producers will be passed on to them.
According to the dairy industry, there is no sign of any relief any time soon. In line with the normal course of the year, the milk quantity will continue to fall for a few more weeks, said Börgermann. Nevertheless, he stressed that in the past, “prices have repeatedly fallen and risen.”
Currently, the shelf price for a 250-gram package of German own-brand butter is 1.99 euros, and for branded products from Kerrygold or Meggle it is 2.99 to 3.39 euros, as data from the price comparison portal Smhaggle shows. Butter prices have been subject to strong fluctuations in the recent past. In the course of 2022, they initially rose sharply. In 2023, they fell again. The packet of own-brand butter temporarily cost just 1.39 euros. Prices then rose again. According to the Federal Statistical Office, consumers paid 39 percent more for butter in July 2024 than in 2020.
The number of dairy cows and dairy farms in Germany has been declining for years. In 2023, there were still 3.7 million animals and almost 50,600 farms.
Source: Stern
