The world butter crisis - Pressing issue

The world butter crisis

The overview of the statistics in the EU Milk Market

“European butter price up around 50% so far this year. Supply hit by a poor harvest and falling exports globally, while demand from markets like China rising. France particularly badly hit, with shortages reported.”

The price of butter is exploding in Europe, with a shortage hitting France, one of the continent’s biggest consumers. The price of 100 kgs of butter has jumped from just over €400 at the start of the year to close to €600. According to the EU’s Milk Market Observatory, Prices are rising amid a shortage of supply across the world.

THE WORLD BUTTER CRISIS 1

UK business insider

Rapidly rising butter prices in Britain are contributing to supermarket inflation of 3.2%, according to recent data, and France is facing a shortage of butter.

Adapted from the UK business insider and Straits times.com

How Singapore has been affected

“Christmas treats may cost more amid global butter shortage, Baked goods and other buttery treats may be more expensive this Christmas season. A global butter shortage that has pushed prices to record highs this year, and emptied supermarket shelves in France, has made its impact in Singapore.”

Bakery chain Swee Heng, which operates 29 neighbourhood bakeries and 12 outlets under the 1989 Classic brand, has had to increase the price of its butter cake by about 8 to 10 per cent. The bakery, which uses up to 300kg of butter imported from New Zealand a day, now pays nearly double the price for the ingredient compared to a year ago.
Last year it was$5 to $5.50 per kg, now we pay close to $8.50 to $9 per kg. It has been increasing gradually this is the highest we've ever paid for butter. While the business has largely been absorbing the increases, new items may be priced 5 to 8 per cent higher to cover costs.

THE WORLD BUTTER CRISIS 3

Businesses in Singapore that have been directly affected
Bakeries and cafe chains have also been feeling the pinch. Ya Kun Kaya Toast said that it has been absorbing the increases, and will not be raising prices or skimping on the slabs of butter used for its toast, though it is closely monitoring the situation.
Bakery chain BreadTalk said that it is seeing "an upward trend in butter prices and will continue monitoring to determine its impact in the long run", but said it has not increased prices of its products for now

THE WORLD BUTTER CRISIS 4

Solution to this crisis? Is this inevitable?
We’ll the solution is simple and avoidable. Not all consumers know that only the butter sources in supermarkets are lacking. However it is only that it hasn’t been received by supermarkets for most consumers. France being the second highest consumer of dairy products are in the process of producing more butter, and eventually releasing them soon. The MILK MARKET will eventually return to normal prices soon. Hence we as consumers can stop panicking and continue purchasing butter as normal, in the meanwhile switching to alternate sources like ghee and margarin would be advisable.

THE WORLD BUTTER CRISIS 5