Report 25 – Released on June 24, 2021

The Western European butter and butter oil price ranges declined. France recorded the top range price. Lower prices within the range came from Germany, Netherlands, Italy, and Belgium. Many industry people in West Germany foresee slightly softer butter prices in coming months. Current butter production has moved lower, but export interest has further receded. Moreover, sources say that the heat wave last week was not conducive to butter sales. This results in some addition to inventories. Storage capacity is well able to accommodate current production that does not immediately move off to customers.

Much current buying is short term focused. Inquiries are reported to be limited. Manufacturers report that buying for Q3 and Q4 of 2021 is slow. Many buyers expect lower prices than some manufacturers are quoting. With inventories building, this gives buyers some comfort that butter will be available later in the year. This eases the decision to wait and see.

Western Europe, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          4,675 - 5,450


     Western Europe, 99% Butterfat, Free on Board - Port Butteroil
     Price Range - $/MT:                          5,250 - 6,400

Information for the period June 14 – 25, 2021, issued biweekly

Secondary Sourced Information: EU butter production January – April 2021, 731,590 MT, decreased 1.2 percent from January – April 2021 according to Eurostat data reported by Eucolait. April 2021 butter production increased 2.3 percent from April 2020. Among some of the leading Western European butter producing countries the butter production percentage change for January – April 2021 compared with January – April 2020, and the April 2021 YOY percentage change are Germany, -5.3 percent, -11.2 percent; France, -5.1 percent, +4.3 percent; Italy, +2.4 percent, -2.3 percent; Netherlands +15.1 percent, +13.4 percent; Ireland +6.4 percent, +3.3 percent.

Butter exports from the EU27 January – April 2021, 71,553 MT, decreased 25.7 percent from January – April 2020 according to Trade Data Monitor and Eucolait. Main destinations January – April 2021, quantity, and percent of the total are United States, 11,986 MT, 16.8 percent; United Kingdom, 8,382 MT, 11.7 percent; and China, 7,717 MT, 10.8 percent.

Butteroil exports from the United Kingdom January – April 2021, 4,102 MT, decreased 39.8 percent from January – April 2020 according to Trade Data Monitor and Eucolait. Main destinations January – April 2021, quantity, and percent of the total are the EU27, 3,813 MT, 92.9 percent; China, 70 MT, 1.7 percent; and Norway, 441 MT, 1.1 percent.

Butter exports from the United Kingdom January – April 2021, 9,813 MT, decreased 38.5 percent from January – April 2020 according to Trade Data Monitor and Eucolait. Main destinations January – April 2021, quantity, and percent of the total are the EU27, 8,948 MT, 91.2 percent; Australia, 150 MT, 1.5 percent; and China, 129 MT, 1.3 percent.

Published by:

Dairy Market News – Madison, WI

Eric Graf, 608.422.8590

Email: Eric.Graf@usda.gov

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