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EU butter prices are up 69% on this time last year, with the latest Milk Market Observatory (MMO) figures quoting US$5,575/t.
While much has been made of the increase in EU butter prices, increases in butter prices are also being seen in New Zealand, Australia and the US.
Oceanic butter prices are up 100% year-on-year, from US$2,963/t to US$5,925/t as of this week.
Meanwhile, with the US driving a lot of demand, prices there are up 14% year-on-year at $5,758/t.
Butter shortage
Last week, Arla CEO Peder Tuborgh told the BBC that there could be a shortage of butter and cream before Christmas in the UK.
He said that insufficient milk is being supplied by farmers to make butter and that the milk shortage had come about because producers “put the brakes on” in 2016.
This, he said, was in the wake of previous overproduction of milk and subsequent lower prices.
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