Report 39 – Released on September 30, 2021

Prices for European butter are unchanged at the bottom of the range but moved higher at thetop of the range. Tight milk and cream supplies are limiting production of packaged and bulkbutter. Some manufacturers are finding it more economical to sell off cream rather thanchurn butter. As cream prices increase, butter manufacturers have raised prices for freshproduction. The higher prices are beyond what some buyers want to pay. As a result, some endusers are taking a wait and see approach to their purchasing activity or are making tradesfor older butter held in inventories. However, some industry sources are uncertain how longthese inventories can meet customer needs, especially as customer demand is seasonallyincreasing and milk intakes and cream supplies are seasonally decreasing. Prices forbutteroil moved up at the bottom of the range but held steady at the top.

     Western Europe, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          4,750 - 5,125


     Western Europe, 99% Butterfat, Free on Board - Port Butteroil
     Price Range - $/MT:                          5,650 - 6,075


     Information for the period September 20 -  October 1, 2021, issued biweekly

Secondary Sourced Information:

EU butter production during January-July 2021 is estimated at 1,273,377MT, a decrease of1.4 percent from January-July 2020 according to CLAL data made available to USDA. Among someof the top butter producers, January -July 2021 butter production and the percentage changecompared with January-July 2020 are Germany, 290,867 MT, -5.3 percent; France, 247,930 MT,-2.9 percent; Ireland, 167,150 MT, +3.8 percent; and Poland, 136,410 MT, -5.7 percent.

Butter and other fats exports from the EU27 January – July 2021, 151,000 MT, decreased 24.3percent from January – July 2020 according to CLAL data made available to USDA. Maindestinations January – July 2021, quantity, and percent change from last year are UnitedKingdom, 25,516 MT, -35.05 percent; United States, 25,040 MT, -6.38 percent; and China,12,787 MT, +25.02 percent.

Published by:
     Dairy Market News - Madison, WI
     MIKE BANDLI, (608)422-8592
     Email: mike.bandli@usda.gov

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