Since the beginning of the year, butter prices have risen to DKK 54,758/ton on the European commodity exchanges, which – according to Jyllands-Posten – is the highest level ever.

The price of butter has soared again, and this week reaches a record high level on the commodity exchanges in Europe. This information is provided by FødevareWatch (food and food industry media) referencing an article in Jyllands-Posten (daily newspaper). The price of a ton of butter has thus increased by DKK 5,000 to DK 54,758, which is the largest one-off price increase ever. Over the past year, the price has increased by 69 percent, and since the beginning of the year, it has increased by 35 percent. In the past two weeks, the increase is almost 8 percent.

The price increase is attributed to the fact that milk production is impacted by uncertainty about future CO2 taxes, at the same time as inflation has increased costs on farms and  caused interest rates to rise.

– At Arla Foods, we expect milk deliveries from our cooperative farmer owners to fall by 1 percent this year. Although milk prices are relatively high, farmers are hesitant to increase production due to great  uncertainly about the future, Thomas Carstensen, Director of Commodity Trading at Arla Foods, underscores to Jyllands-Posten.

See the full article on Jyllands-Posten HERE (subscription required)