Report 43 – Released on October 28, 2021

European butter and butteroil prices have each risen significantly in the last two weeks.Industry contacts report demand for packaged butter is outpacing production. Some contactsthink the trend of higher butter prices will continue, and buyers may be trying to stock upto avoid any potential further price increases. Milk and cream deliveries are nearing thelow point for the year, and butter makers are having a tough time staying ahead of thedemand. In some cases, manufacturers are finding it more economical to sell off the creamthan make butter, even with the strong butter prices. Interest for block butter isincreasing. Processors have been meeting the demand by taking butter out of frozeninventories. Butter stocks are shrinking. While inquiries are still coming in, some contactsthink demand for butter used in processing may be getting mostly covered through the end ofthe year.

     Western Europe, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          5,400 - 6,275


     Western Europe, 99% Butterfat, Free on Board - Port Butteroil
     Price Range - $/MT:                          5,950 - 6,525


     Information for the period October 18 - 29, 2021, issued biweekly

Secondary Sourced Information:

EU butter production during January-August 2021 is 1,435,230 MT, a decrease of 1.1 percentfrom January-August 2020 according to CLAL data made available to USDA. Among some of thetop butter producers, January -August 2021 butter production and the percentage changecompared with January-August 2020 are Germany, 326,070 MT, -4.7 percent; France, 276,810MT, -1.7 percent; Ireland, 196,120 MT, +4.8 percent; and Poland, 153,430 MT, -5.2 percent.

Butter and other fats exports from the EU27 January – August 2021, 175,000 MT, decreased20.8 percent from January – August 2020 according to CLAL data made available to USDA. Maindestinations January – August 2021, quantity, and percent change from last year are UnitedKingdom, 30,206 MT, -32.17 percent; United States, 30,009 MT, -1.59 percent; and China,13,663 MT, +19.04 percent.

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