At the end of the year, the rather rapid and significant increase in prices of butter stopped. – INFAGRO

First, the period of pre-holiday shopping activity has ended. In addition, a certain amount of excess milk was released on the market, primarily by producers of fresh milk products. It was redirected to the production of butter. That is, the supply of butter has somewhat increased.

However, prices are not falling. It is possible that at the beginning of the year, prices may still strengthen at the current level, if it turns out that manufacturers’ warehouses for the holidays have decreased more significantly than expected. The reason for such forecasts may be another increase in prices on the world markets in the third decade of December after a fall in the middle of the month. Now prices of butter are 40% higher than they were in the same period last year. This, of course, has a negative effect on demand.

It should be noted once again that the volumes of butter production in 2023, most likely, were not less than in 2022, but consumption increased significantly. At the same time, exports have halved, while imports have grown several times, but they are still much lower than exports.

Due to the increase in the price of butter, production of its substitutes has increased significantly in recent months. But overall, in 2023, production of spreads and vegetable-cream mixtures did not change fundamentally.

INFAGRO