Since the beginning of the year, the price of butter has increased nearly 70 percent, according to Rzeczpospolita. In an interview with the newspaper, one of the producers stated that “it will not be cheaper”, and “after a cyclical slowdown, the price of butter will continue to rise.”
“Food prices in the world have been increasing almost continuously for the past twelve months or so. In many cases, their prices are near record levels. The Food and Agriculture Organization of the United Nations (FAO) World Food Price Index reached 133.2 points in October. And compared to September, it increased by 3.9 points by 3 percent, and compared to October 2020, it increased by up to 31.8 points by 31.3 percent, and was at the highest level since July 2011. – Quotes “Rzeczpospolita”.
High prices of dairy products
The daily notes that “global price increases do not exceed dairy products either,” and “in October, its sub-index set by the Food and Agriculture Organization reached 120.7 points, which means an increase of 2.6 points (2.2 percent) over September and 16, two points (15.5 percent) during the year.”
“In October, international prices of butter, skimmed milk powder and whole milk powder rose sharply for the second month in a row on the back of strong global demand. The increase in prices was also attributed to lower milk shipments and stocks in Europe and a slower-than-expected start of the new milk production season. in Oceania”.
Butter price hike
The newspaper adds that “a significant increase in the price of dairy products is also visible in Poland”, and “this particularly affects the price of butter”.
“Only a few weeks ago you could buy a cube for 5 zlotys, and even cheaper in promotions. Today we pay 7-8 zlotys for butter and more. Only sometimes you can buy it a little cheaper. Again, as a few years ago, at the price Previous to butter, cubes of butter weighing less than 200 grams (for example, 170 grams) have already begun to appear in stores, thanks to which their price has decreased a little. Products with a lower content of fat and margarine are also gaining popularity, “writes” Rzeczpospolita “.
Butter price – data from the Ministry of Economy and the Central Bureau of Statistics
“Changes in butter prices are clearly visible in the data collected by the Department of Agriculture. They show, among other things, that wholesale butter increased 3.5% in the week between November 15 and 21 only. Within a month the wholesale butter price reached. It rose by 12.9 in cent, but the scale of the problem can be seen when comparing the current price with the price at the beginning of the year, and here the increase exceeds 67 per cent. ” – Informs the newspaper.
There are many reasons for the high price of butter, but the main reason is the fact that for a long time the price of butter has been very low relative to the cost of production. Accelerating inflation has affected the increasing costs of sourcing and processing raw materials, packaging and distribution materials. At the same time, the demand for milk fat is increasing in world markets, while milk production in many countries is correcting, often due to lack of profitability of dairy farmers, says Małgorzata Cebelińska, Commercial Director of SM Mlekpol.
He also adds: – According to our forecasts, butter prices will not decrease, and the increase observed recently may stop only temporarily.
“There is more bad news from the agri-food market. Butter is not the only product whose prices have gone up several tens of percent since the beginning of the year. And wholesale rapeseed oil is now 75.6 percent more expensive than last year (only between November 14 and 21). ), increased by 13.5 percent.) The price of wheat flour (type 450 in packages) increased by 33.8 percent during the year, wheat flour for bakeries (type 500 in bags) by 52.2 percent, and for rye bakeries (type 580 in bags) by 63.4 percent. And the average selling prices for cage eggs today are 20.2 percent (liter) and 27.6 percent (m) higher than the previous year “- said the newspaper.
According to the data of the Central Bureau of Statistics on inflation in October 2021, compared to October 2020, butter increased by 7%. The Central Statistics Office has not released detailed data on price increases in November yet.
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