The potential cost of butter may increment further.
Recent demand for less milk and higher fat content has affected butter prices dramatically. The managing director of the dairy industry association, Björn Börgermann, shared this information, citing reduced milk supplies from farmers and lower fat content in raw milk as contributing factors. The reduced fat availability due to increased demand for other dairy products, like cheese, and fewer butter imports have also contributed to the price surge. The prices for butter have significantly increased, with spreadable fat costing nearly 21% more than last year. The retail sector ultimately determines the final price of butter in stores.
While the trade sector remained tight-lipped about potential price increases, the scarcity of basic raw materials has impacted manufacturing and distribution costs. The German Food Trade Association's managing director, Philipp Hennerkes, highlighted this issue. The prominent retailers, Aldi Nord, Lidl, and Rewe, declined to comment on the price development. The wholesale prices for block butter have surpassed the 2022 record high of 7.95 euros per kilogram, according to the German Dairy Farmers Association, and similar increases are anticipated for packaged butter post-holidays.
Börgermann reassured that while prices have fluctuated in the past, "prices have always gone up and down." As of July 2024, consumers paid 39% more for butter compared to 2020, according to the Federal Statistical Office. The number of milk cows and dairy farms in Germany has been dwindling for years, with only 3.7 million animals and 50,600 farms remaining in 2023.
Paraphrased butter price text:
High demand for milk with lower quantities and increased fat content have influenced butter prices. This information was revealed by the managing director of the dairy industry association, Björn Börgermann. Factors such as reduced milk supplies from farmers, lower fat content in raw milk, and increased demand for other dairy products like cheese have contributed to this price surge. Additionally, the import of butter has significantly decreased. As a result, the prices for butter have increased significantly, with the spreadable fat costing nearly 21% more than last year. The retail sector ultimately determines the final price of butter in stores.
The retail sector remained mum about potential price increases, but the scarcity of raw materials has had a significant impact on manufacturing and distribution costs. According to Philipp Hennerkes, the managing director of the German Food Trade Association, this is a fundamental concern. Aldi Nord, Lidl, and Rewe declined to comment on the price development. The wholesale prices for block butter have already surpassed the 2022 record high of 7.95 euros per kilogram, as suggested by the German Dairy Farmers Association. Moreover, the association anticipates similar increases for packaged butter post-holidays.
While prices have flown high and low in the past, according to Börgermann, "prices have always gone up and down." As of July 2024, consumers paid 39% more for butter compared to 2020, as reported by the Federal Statistical Office. The number of milk cows and dairy farms in Germany has been steadily decreasing for years, with only 3.7 million animals and 50,600 farms remaining in 2023.
- The fluctuations in butter prices are attributed to changes in milk demand, with a shift toward milk with higher fat content, as mentioned by Björn Börgermann, the managing director of the dairy industry association.
- As revealed by the Federal Statistical Office, consumers have been paying 39% more for butter in July 2024 compared to 2020, reflecting the historical ups and downs in butter prices that Börgermann mentioned.
