Report 35 – Released on August 27, 2020

Western European butter prices are mixed. Butter oil process are higher. German butter sellers recorded the highest prices. Those prices were followed by prices in Netherlands,France, Italy and Belgium. While there is a shift in the multi country high/low butter price range, some individual plants have been selling at generally steady prices over the two-week report period.

Packaged butter demand is called normal for this time of summer. Expectations are that demand will increase in September while butter production will be lower. Many observers believe higher prices will result. In addition to expected higher demand for butter, higher cream pricing is anticipated. Some butter manufacturers expect gradually rising butter prices into 2021. Those factors have motivated some current sales. Contracting is uneven because while higher pricing is generally expected, sellers and buyers diverge as to how much higher.

 Western Europe, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          3,950 - 4,125


     Western Europe, 99% Butterfat, Free on Board - Port Butteroil
     Price Range - $/MT:                          4,925 - 5,100


     Information for the period August 17 - 28, 2020, issued biweekly

Secondary Sourced Information:

EU butter production during June 2020 was 3.8 percent higher than June 2019, according to Eurostat. January – June 2020 butter production was reported as 1.7 percent higher than January – June 2019 according to CLAL data provided to USDA.

Looking at some of the primary Western European butter producing countries January – June 2020 compared with January – June 2019, the percentage changes are Germany, +2.1 percent;France, +1.6 percent; Netherlands, -6.6 percent; Italy, +0.6 percent; and Ireland, +1.0 percent, according to CLAL data provided to USDA.

January – June 2020 butter exports from the EU, 141,438 MT, increased 37 percent YTD according to Euro stat data reported by the European Commission. Top importers, quantity imported, and percent change from the same period in 2019 when reported include United Kingdom, 24,648 MT, -19 percent (DMN percentage calculation); United States, 22,178 MT,+131 percent; and Saudi Arabia, 11,107 MT, +168 percent.

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

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