Report 21 – Released on May 27, 2021

In Western Europe the butter price range moved higher at each end. The same result wasrecorded for the butteroil price range. Butter and butteroil prices tended to increase eachweek of the two-week reporting period. French butter prices were highest, followed byNetherlands, then Germany. France has been off to a slow dairy production start for 2021. Many customers for butter produced in France have strong sourcing preferences. Thus, thelower production is a substantial factor in moving French butter prices higher than in someother countries. That is also a contributing factor resulting in a somewhat wide pricerange.

Overall packaged butter demand is strong in Western Europe. Promotions for branded butterhave declined. That has transitioned demand to private label butter. Increasing cream pricesare helping to support firming butter prices as well. Bulk butter demand is also increasing.

It is believed that a number of buyers have not secured butter for June yet. Higher buyingactivity from brokers for uncommitted June butter is noted. That may shift some near termsales away from manufacturers to brokers. The strongest current contracting seems to be fromEU buyers rather than for export.

Secondary Sourced Information:

EU butter production January – March 2021, 530,000 MT, decreased 1.3 percent from January –March 2020 according to Eurostat data reported by Eucolait. March 2021 production increased0.3 percent. French butter production January – March 2021 decreased 6.1 percent YOYaccording to CLAL data made available to USDA.

EU exports of butter during March 2021, 22,459 MT, decreased 11 percent from March 2020according to Eurostat. January – March 2021 butter exports, 52,866 MT, decreased 24 percentfrom January – March 2020.

EU exports of butteroil during March 2021, 3,375 MT, decreased 19 percent from March 2020according to Eurostat. January – March 2021 butteroil exports, 8,690 MT, decreased 31percent from January – March 2020.

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

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