Raw materials are scarce
Butter could become even more expensive
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High demand for fat and lower milk quantities have consequences – for the price of butter. Wholesale prices for block butter have already exceeded the high of two years ago. Meanwhile, retail has the final say. The dairy industry already points out that price fluctuations are completely normal.
The price of butter has already risen recently, and consumers may soon have to dig even deeper into their pockets. This was confirmed by industry associations. “We are currently seeing very high block butter prices in the official quotations like never before,” said the general manager of the dairy industry association, Björn Börgermann. The reasons he cited were smaller quantities of milk supplied by farmers and a lower fat content in the raw milk.
Due to high demand for other dairy products such as cheese, less fat was available for the production of butter. In addition, significantly less butter was imported. Butter prices have already risen significantly in recent months. In July, the spreadable fat cost almost 21 percent more than a year earlier. According to Börgermann, it is impossible to say what price consumers will expect and when. “The price is determined by supply and demand and the retail price is ultimately decided by the food retailer.”
Retailers were reluctant to comment on possible price increases. The shortage of value-determining raw materials has a fundamental impact on calculations in production and sales, said the managing director of the Federal Association of the German Food Trade, Philipp Hennerkes. Aldi Nord, Lidl and Rewe did not want to say anything about the development of prices. According to the Federal Association of German Dairy Farmers, wholesale prices for block butter have recently exceeded the high of 2022 at up to 7.95 euros per kilo. A corresponding increase in packaged butter is also expected after the end of the holiday season, said spokesman Hans Foldenauer.
“Prices have continually fallen and risen”
The information is about the prices that trading companies pay. Consumers must expect that price increases from producers will be passed on to them. According to the dairy industry, relief is not in sight any time soon. According to the normal course of the year, the milk quantity will continue to fall for a few weeks, said Börgermann. Nevertheless, he emphasizes: In the past, “prices have repeatedly fallen and risen.” The price is currently 1.99 euros for a 250 gram package of private label German brand butter, as data from the price comparison portal Smhaggle shows.
Butter prices have been subject to strong fluctuations in the recent past. Over the course of 2022, they initially rose sharply to prices of 2.50 euros and more, and in 2023 they fell again to up to 1.39 euros per packet. 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 falling for years. In 2023 there were still 3.7 million animals and almost 50,600 businesses.
