Report 41 – Released on October 08, 2020

The butter price range in Western Europe moved slightly lower. Pricing varies among countries and within some of the major producers. While the limits of the price range shifted, many prices at specific plants with regular customers were quite steady. Butter oil pricing is mixed.

Packaged butter sales in Germany are at expected levels. This market is more profitable for manufacturers than block butter. However, sales typically increase late in the year, so a bit more price negotiating is occurring in contracting discussions between sellers and buyers reflecting expectations for late 2020.

Block butter deals are slow to finalize. Short term demand is extremely subdued.

Manufacturers are not eager to increase volumes at pricing many buyers will accept. Selling cream is often more profitable than making it into block butter. Some buyers report that many current bids are essentially ignored by manufacturers. Moreover, many buyers are well covered through the end of the year.

Butter exports from Western Europe have slowed down. Current pricing challenges include being able to compete effectively in some export markets, except for some specialty premium brands.

     Western Europe, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          3,950 - 4,200


     Western Europe, 99% Butterfat, Free on Board - Port Butteroil
     Price Range - $/MT:                          4,700 - 5,075


     Information for the period September 28 -  October 9, 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
     DMN MARS (My Market News): https://mymarketnews.ams.usda.gov