Europe Experiencing a Butter Crisis

In European countries, a butter crisis has emerged due to high price increases, leading to some supermarkets imposing a four-pack limit on butter sales. Across Europe, the substantial rate of increase in butter prices due to costs and production deficiencies has become a problem for both consumers and economic administrations. According to data from the European Statistics Office (Eurostat), butter prices in EU countries rose by an average of 30% annually in February. In Germany, with the largest population in Europe, data from the Federal Statistics Office (Destatis) shows that the producer price of butter in January increased by 39.8% year-on-year. These rates, significantly higher than the January inflation rate of 2.5% in the Eurozone, are noteworthy. Moreover, due to butter being sold in 250-gram packages in Europe, consumers are frequently forced to purchase commonly used products and are more affected by price fluctuations. This situation undermines policies aimed at reducing inflation expectations. LIMIT OF FOUR PACKS IMPOSED In the continent, consumers are paying the highest price in history for butter, while supermarkets are offering promotions on discounted butter to prevent panic buying, imposing a limit of a maximum of 4 packs of butter (each 250 grams) per customer. Additionally, in some supermarkets, butter is stored on special secured shelves along with luxury items like caviar. POLAND SELLS RESERVES Meanwhile, in Poland, butter prices are in the political agenda as the country sees butter becoming a luxury product, prompting the government to take urgent measures. In an effort to balance the rising prices ahead of the May 2025 presidential elections, the Polish government announced in December 2024 that 1,102 tons of butter from the strategic butter reserve would be released. The Polish Strategic Reserves Agency also announced that unsalted frozen butter would be sold to businesses at $7 per kilogram. INCREASED COSTS, DECREASED PRODUCTION Meanwhile, European farmers are struggling with expensive raw materials and energy, low milk prices, and high transportation costs, leading to production shortages in butter. Additionally, the increase in the use of concentrated feed in Europe in recent years has resulted in lower fat content in milk than usual, contributing to a decrease in butter production. Furthermore, while the number of cows in the European Union fell below 20 million last year, countries with significant dairy and butter industries like the Netherlands and Ireland are experiencing intense debates on agricultural policy. Across Europe, farmer protests are increasing due to government climate policies and rising costs.