Report 15 – Released on April 09, 2020

Butter prices in Western Europe are lower. The highest prices are in France, followed by Belgium, then Germany. Current butter prices are quite a bit lower than one year ago when the Dairy Market News price range for Western European butter was 4,600-4,750.

Current price weakness follows markedly lower current cream prices in many countries. Partly it reflects new consumption patterns which followed imposition of COVID-19 stay at home type requirements in almost all of Western Europe. There was an initial surge in consumers stocking butter for in home consumption. That has subsided, but a result is less retail store butter purchasing by consumers with more than normal butter currently in home refrigerators. Overlying this is a drastic drop in butter purchasing for food service. All and all, the weaker butter prices were not much of a surprise to butter manufacturers.

Butteroil prices are mixed, steady to slightly lower.Western European butter plant managers in Germany and France, the major producers, have active packaged butter schedules and hope to increase production further moving into May.Demand is characterized as coming primarily from within the four walls of homes, not from food service. Packaged butter for home consumption is the focus of butter manufacturing. Due to the unusual pattern of home stocking, it is not certain whether the normal spike of butter sales before religious holidays will occur this April. Butter manufacturers have cutback schedules for bulk butter production. Current new demand is slight. Even some contracted bulk butter is reported to be slow in being accepted.

Some butter manufacturers are reviewing rules governing intervention purchases of butter, a program providing a price floor. Eucolait recently summarized the program as having been open since March 1. It continues until September 30. The fixed butter intervention price is 2,217.50 euros/MT. When offered by sellers, the European Commission has to buy up to 50,000 MT of butter, subject to various requirements for date of manufacture, packaging, etc.

Western Europe, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          2,475 - 3,175


     Western Europe, 99% Butterfat, Free on Board - Port Butteroil
     Price Range - $/MT:                          3,750 - 4,100


     Information for the period March 30 -  April 10, 2020, issued biweekly
     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
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