Report 39 – Released on September 24, 2020

Butter prices in Western Europe are stronger. Within the price range, the highest prices tend to be from German manufacturers, followed by France, Belgium and Netherlands. The price movement was generally expected as seasonal milk production declines and cream pricing remains up. Many customers like the brands/plants they regularly patronize. Butter oil pricing is mixed, resulting in a wider price range.

Yes, prices matter, but existing business relationships also matter. Recent price strength may affect the tempo of closing deals, but few manufacturers are experiencing an exodus of good customers to other sources and other continents. Production of butter remains actively scheduled. Production not immediately sold can be added to cold storage stocks for anticipated sale in coming months. There haven’t been many people startled by recent price strength in this market.

     Western Europe, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          4,000 - 4,225


     Western Europe, 99% Butterfat, Free on Board - Port Butteroil
     Price Range - $/MT:                          4,850 - 5,075


     Information for the period September 14 - 25, 2020, issued biweekly

Secondary Sourced Information:

Butter production in the EU January – July 2020 increased 1.3 percent from January – July 2019, according to CLAL data made available to USDA. In some leading EU butter producing countries, the production percentage change includes Germany, +1.5 percent; France, -0.1 percent; Ireland, +2.3 percent; and Netherlands, -10.7 percent.

January – July 2020 butter exports from the EU, 168,000 MT, increased 52.5 percent from the same period in 2019 according to CLAL data made available to USDA. Top importers, quantity imported, and percent change from the same period in 2019 when reported include United States, 27,584 MT, +22.0 percent; Saudi Arabia, 15,508 MT, +102 percent; and China, 10,735 MT, +67.2 percent.

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

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