2024-08-31 22:48:18
The price of butter continues to rise. According to observers, branded products in 250-gram packages could soon break a record high.
The price of a 250-gram packet of butter could soon reach a new high. Market observers expect that the price of butter will exceed the previous record set at the end of 2022 in the coming months, reports the industry medium “Lebensmittelzeitung”. At that time, private label butter cost 2.29 euros and brands such as Kerrygold and Meggle cost 3.49 euros per 250 grams. The price of butter has been rising for a year.
The renewed price increases are expected because German dairies are likely to be able to enforce higher prices for butter in their contracts for September. Industry observers do not rule out the possibility that the increase will peak in December this year and that branded products could cost around four euros. This is because retailers and dairies usually sign longer-term contracts for the Christmas period, which could drive prices up even further.
Although the 2 euro mark for private label butter was expected to be exceeded in August, the price remained at 1.99 euros. This suggests that retailers did not fully pass on the increased contract prices to consumers during the holiday season, writes the “Lebensmittelzeitug”. A price increase in September would be the seventh within a year. In August 2023, a packet of butter still cost 1.39 euros.
The ongoing price increases are mainly due to the falling fat content in raw milk and the decline in milk deliveries. The usual seasonal decline in fat content from January to June was significantly more pronounced this year than in the previous year. The Federal Office for Agriculture and Food calculated an average fat content of 4.10 percent for the first six months of 2024, the lowest value since 2022. This decline has led to a rise in cream prices, which have currently reached an all-time high and are also making other products such as cream and cheese more expensive.
High butter prices usually have a direct impact on sales. Many consumers turn to margarine or mixed spreads made from butter and rapeseed oil instead. However, in August these alternatives were just as expensive as butter for the first time.