Butter Boom: European Prices Skyrocket Amid Dairy Shifts

European butter prices have soared by 83% year-on-year due to strong demand, tight stocks, and dairy producers' preference for profitable cheese. With Christmas nearing, some small bakers will particularly feel the pressure. Analysts predict prices may ease as global milk output increases.

Butter prices in Europe have hit an all-time high, surging by 83% over the past year. This presents a growing challenge for bakers and pastry chefs already facing high costs for chocolate and sugar as they gear up for the busy Christmas season.

The dramatic price increase is attributed to robust demand for butter, limited stock availability, and a strategic shift by dairy processors to allocate more milk for more profitable cheese rather than butter production. By the end of September, the price of butter had reached $8,706 per metric ton, according to European Commission data.

While some large food companies have secured their butter supplies, small producers are expected to face significant challenges. Milk production, which slightly rebounded in 2024, remains strained compared to demand, keeping pressure on prices as analysts foresee an easing in the coming months with increased output.

(With inputs from agencies.)