Butter costs consistently escalate.
Butter costs have spiked dramatically lately, causing consumers to brace for potential wallet hits. This was confirmed by industry bodies to the German Press Agency. "We're currently faced with unusually high block butter prices in the official quotations, something we've never experienced before," stated Björn Börgermann, head of the Milk Industry Association.
He attributed the rise to lower milk volumes supplied by farmers and a lower fat content in raw milk. With a higher demand for other dairy products like cheese, the fat necessary for butter production was in short supply. Furthermore, significantly less butter was imported. Previously, the "Lebensmittel Zeitung" had reported on this.
In the recent past, butter prices have already skyrocketed. In July, spreadable fat cost almost 21% more compared to the previous year. Börgermann was unable to provide an exact timeline or estimated increase in price. "The price depends on supply and demand, and ultimately, the retail price is decided by the food retail industry," he added. However, the trading sector was quiet on the topic of potential price increases. The scarcity of essential raw materials significantly impacts production and distribution calculations, according to the managing director of the Federal Association of the German Food Trade (BVLH), Philipp Hennerkes. Representatives from Aldi Nord, Lidl, and Rewe refused to comment on the price development.
Just about every dairy producer is grappling with these unusually high butter prices, as Börgermann mentioned. Consumers are now paying just about as much for butter as they have in over a year.
