21.02.2025 11:21
The significant increases in butter prices due to rising costs and production shortages across Europe have become a problem for both consumers and economic authorities.
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According to data from the European Statistical Office (Eurostat), butter prices in EU countries increased by an average of 30% year-on-year in February. In Germany, which has the largest population in Europe, the Federal Statistical Office (Destatis) reported that the producer price of butter increased by 39.8% year-on-year in January.
The fact that these rates are significantly above the 2.5% inflation rate recorded in the Eurozone in January is noteworthy. Additionally, since butter is sold in 250-gram packages in Europe, consumers are forced to buy frequently used products often, making them more sensitive to price fluctuations. This situation also undermines policies aimed at reducing inflation expectations.
SUPERMARKETS ARE HOLDING PROMOTIONS FOR BUTTER
While consumers on the continent are paying the highest prices for butter in history, supermarkets are organizing promotions for discounted butter. Supermarkets are imposing a limit of 4 packages of butter (each package 250 grams) per customer to prevent panic buying. In addition, in some supermarkets, butter is stored on specially secured shelves alongside luxury products like caviar.
POLAND IS SELLING FROZEN BUTTER RESERVES TO LOWER PRICES
In Poland, Germany's neighbor, butter prices are on the political agenda. As butter has become a luxury product in the country, the government has resorted to emergency measures. Ahead of the presidential elections in May 2025, the Polish government announced that 1,102 tons from the strategic butter reserve would be released in December 2024 to balance rising prices. The Polish Strategic Reserves Agency also announced that unsalted frozen butter would be sold to businesses at $7 per kilogram.
COSTS ARE RISING, PRODUCTION IS FALLING
Meanwhile, in Europe, farmers are struggling with expensive raw materials and energy, low milk prices, and high transportation costs, which is leading to production difficulties in butter. Additionally, it is stated that due to the increased use of concentrated feed across Europe in recent years, the fat content of milk is lower than normal, resulting in decreased butter production. Furthermore, last year the number of cows in the European Union fell below 20 million, and there are intense debates regarding agricultural policy in countries with significant dairy and butter industries, such as the Netherlands and Ireland. Across Europe, protests by farmers are also increasing due to government climate policies and rising costs.
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