While the average in July price A 200-gram cube of butter was still PLN 6.17, in August it had already increased to PLN 7.08. The reasons for this state of affairs include, among others, the growing costs milk – last month they were already 1.5 percent higher than in the same period last year. Problems with dairy products are largely due to shortages, and these are caused by heat stress of cattle and drought that makes grazing difficult for animals. We wrote more about this topic in the article: “Butter prices have skyrocketed. They have never been higher. Milk is the culprit“.
Butter is getting more and more expensive. 10 PLN per cube is a matter of a few weeks?
As we reported on Next.gazeta.pl, according to analysts Credit Agricole at the turn of the third and fourth quarter of this year, there will also be a stronger increase in prices on the world milk market. This is one of the factors that makes Forsal forecasts a further increase in butter prices and warns that within a few weeks the price of PLN 10 will not be an exception for the most expensive producers.
The portal notes, however, that the high cost of milk is not the only reason. It points out that previously low prices have increased demand for butter, and this, given the decreasing supply, is now leading to additional price increases. It is also significant that alternative fats are constantly getting more expensive. Olive oil, the production of which in Southern Europe has been steadily declining, has doubled in price over the past three years. As a result, many customers have decided to buy butter instead.
Butter is getting more expensive, but what about margarine? Stores are deciding on promotions
As the portal notes Interiain the face of rising butter prices, large stores are deciding primarily to include margarine in their promotional offer. At the same time, Forsal predicts that a sudden price increase should not be expected in the case of the latter. They are dependent on the costs of vegetable oils, primarily rapeseed. In their case, the harvest is in line with the forecasts, so there is no risk to supply.
In connection with this, the portal assesses the increase in margarine prices as unlikely. Further price formation, both in the case of margarine and rapeseed oil, may depend on consumer decisions. It is possible that customers who give up butter on thing vegetable fats will lead to an increase in demand.