Report 9 – Released on March 04, 2021

The butter and butteroil price ranges moved higher. Cream prices are increasing.Butter and butteroil prices within the range at a number of plants also increased. Butterprice firming is expected to continue. Manufacturers are finding good interest from buyersin closing contracts with future deliveries. Buyers and sellers typically expect higherprices into the second half of 2021. Seller contracting hesitancy mostly relates to thedifficulty of projecting further price development in a rising market.

Current sales are strong within Western Europe. Export inquiries are very active. EUcountries are the largest butter exporting source among the primary dairy exportingcountries, with increased export volumes during 2020 compared to 2019. Existing customersneed to have orders filled. The price differential with Oceania butter is drawing moreexport customers to shop for butter in Western Europe. That too, is helping to firm prices.

     Western Europe, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          4,375 - 4,850


     Western Europe, 99% Butterfat, Free on Board - Port Butteroil
     Price Range - $/MT:                          4,825 - 5,475


     Information for the period February 22 -  March 5, 2021, issued biweekly

Secondary Sourced Information:

EU annual 2020 butter production increased 2.3 percent from 2019 annual butter productionaccording to CLAL data made available to USDA. Among some of the top butter producers, thepercentage changes during 2020 compared with 2019 are Germany, +1.9 percent; France, -0.3percent; Netherlands, -3.4 percent; Italy +0.2 percent; and Ireland +4.6 percent.

Calendar year 2020 butter exports from the EU, 259,033 MT, increased 4.7 percent fromcalendar year 2019 according to Eucolait. Top 2020 export destinations, quantity exported,and percent of calendar year 2020 exports include United Kingdom, 45,989 MT, 20.1 percent;United States, 35,557 MT, 15.6 percent; and Saudi Arabia, 15,380 MT, 6.7 percent.

Calendar year 2020 butteroil exports from the EU, 37,656 MT, decreased 14 percent from calendar year 2019 according to Eucolait. Top 2020 export destinations, quantity exported,and percent of calendar year 2020 exports include United Kingdom, 11,834 MT, 35 percent;Saudi Arabia, 3,588 MT, 10.6 percent; and Philippines, 2,637 MT, 7.8 percent.

     Butter Export Volumes and Percent Change 2019/2020
     Country               Volume MT     Percent Change

     EU                      259,033          +4.7
     New Zealand       233,339          -13.8
     USA                     21,623           +0.8
     Australia              11,372           +2.1

Published by: Dairy Market News – Madison, WI Eric Graf, 608.422.8590 Email: Eric.Graf@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