Report 39 – Released on September 26, 2019

Prices for butter in Western Europe are mixed. Butteroil prices are mixed, weaker at the low end of the price range, but higher at the top. Demand for Western European butter has been strong. Orders have increased. Interest for future delivery is stronger than immediate needs.

However, contracting discussions for early 2020 finds some buyers taking a wait and see approach even as other buyers decide to close deals. Most buyers seem to be stocked for immediate demand. Butter pricing also moved higher due to non-butter demand for cream.

There is some competition for cream and butter manufacturers are facing upward price pressure. Mostly they pay to get cream because making butter remains profitable.

Western Europe, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          3,825 - 4,125


     Western Europe, 99% Butterfat, Free on Board - Port Butteroil
     Price Range - $/MT:                          4,825 - 5,775


     Information for the period September 16 - 27, 2019, issued biweekly

Secondary Sourced Information:

European Union butter production January ± July, 2019, increased 2.2 percent from the same period in 2018, according to Eucolait.

Results in the top five producing countries for 2019 are shown in the following table, with countries listed in descending order from most, to less, butter production.

2019 European Butter Production

                     Percent Change
     Country         July YOY   YTD

     Germany          +3.6      +3.3
     France           +6.4      -2.2
     Ireland         +18.1     +12.8
     Poland           +6.3      -0.6
     United Kingdom  +10.0     +16.9

     EU butter exports January - July 2019, 92,504 MT, increased 19 percent from January - July
     2018, according to Eurostat.
     EU BUTTER EXPORTS ± TOP 3 DESTINATIONS
                  MT              PERCENT CHANGE
     DESTINATION  Jan.-July 2019  Jan.-July 2019/2018

     USA          21,984          +45
     Japan         6,086          +57
     China         5,620          +13
     Published by:
     Dairy Market News - Madison, WI
     Eric Graf, 608.422.8590
     Email: Eric.Graf@usda.gov

     Additional Dairy Market News Information:

     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (My Market News): https://mymarketnews.ams.usda.gov