Report 29 – Released on July 16, 2020

Butter prices in Western Europe increased, as did butter oil. Prices are varied among individual plants and countries. Prices are highest in Germany, followed by France, Italy,Belgium, and Netherlands.

July is traditionally a period when many Western Europeans leave work behind for multi week holidays. This year seems no different except that many people are staying closer to home or staying home. Internal EU packaged butter demand is described as brisk, with atypical seasonal demand from more consumers at home on vacation than in recent years. In Germany,packaged butter demand is brisk, as more people than usual are on vacation at home in July. Retail butter advertising activity has also increased.

Some observers report bulk butter interest is slower than packaged butter. Strong cream prices lead some manufacturers to sell cream rather than churning bulk butter, if buyer swill not meet price expectations. There is some buyer resistance to higher prices for bulk butter, reflecting decent end user stocks on hand. Export interest is quiet. Most export customers seem to be covered through Q3.

Butter exports remain strong. Global customers are stepping up.

Applications for Private Storage Aid (PSA) for butter during the duration of the current program, May 7, 2020 – June 30, 2020, totaled 67,694 MT according to Eucolait. The countries with the most butter in PSA are Netherlands, Germany, and Ireland. No more applications will be accepted for the current program.

Western Europe, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          3,725 - 3,950


     Western Europe, 99% Butterfat, Free on Board - Port Butteroil
     Price Range - $/MT:                          4,675 - 4,850


     Information for the period July 6 - 17, 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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