Report 17 – Released on April 23, 2020

Butter and butter oil prices in Western Europe are lower. Demand for butter has eased.Seasonal milk increases are leading to higher butter production. Production is expected to move even higher toward expected seasonal highs. Storage space is getting tighter. Recent increases in cold storage of meat has contributed to refrigerated space competition. These factors have all been cited as leading to lower butter prices.

Weakening dairy prices in the wake of COVID-19 impacts in Western European dairy markets may contribute to opening Private Storage Aid (PSA). According to Eucolait, all EU agriculture ministers recently called for activation of private storage aid for butter. This week the EU Council of Commissioners began the process to activate PSA for butter. Formal adoption is expected by the end of April. A maximum of 140,000 MT of butter is expected to be eligible. The expected storage period is 90 – 210 days. There is some conflicting information as to the maximum storage time, with other sources reported to cite six months.

     Western Europe, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          2,275 - 2,675


     Western Europe, 99% Butterfat, Free on Board - Port Butteroil
     Price Range - $/MT:                          3,325 - 4,050


     Information for the period April 13 - 24, 2020, issued biweekly

Secondary Sourced Information:

Butter production in the EU decreased 0.3 percent January – February 2020 compared with January – February 2019 according to Eurostat. February 2020 butter production increased 0.7 percent YOY. Through February, France produced 2.8 percent more butter than last year.Italy is up 0.6 percent for 2020 through this February. Ireland reports production down 5.2 percent through this February compared with last year. The leading EU butter producer,Germany, is down 0.7 percent through this February compared with last year.

January 2020 butter exports from the EU,18,216 MT, increased 71.2 percent YOY. Top destinations, quantity and percentage of the total, include the United States, 2,878 MT,15.8 percent; Saudi Arabia, 1,892 MT, 10.4 percent; and Morocco, 1,226 MT, 6.7 percent.

  Published by:
     Dairy Market News - Madison, WI
     Eric Graf, 608.422.8590
     Email: Eric.Graf@usda.gov

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