Butter prices soar by a fifth amid tight milk and cream supplies
Published on The Grocer
Butter prices have risen by as much as 20.8% over the past month, following a tightening in supply of milk and cream.
Thirty-seven out of 117 butter lines at the major multiples have seen their prices hiked in the five weeks to 13 November, according to analysis of Assosia data by The Grocer.
Branded butter has seen the biggest increases. Trewithen Salted Block Butter 250g, for instance, has risen 20.8% at Tesco, from £2.40 to £2.90.
Other brands have also got significantly pricier. All Things Butter Garlic & Herb Butter 125g is up 20% in Waitrose. Country Life British Salted 250g and Unsalted Butter 250g at Sainsbury’s are up 12.7% – contributing to an annual price increase of 24%.
Own-label 250g block butters have also risen in price as reflected in The Grocer’s Key Value Items tracker. Asda’s is up 5.8% to £1.92.
At Sainsbury’s, Tesco, Morrisons, Aldi and Lidl, price is up 5.6% from £1.79 to £1.89. These 5.6% rises have contributed to an overall annual increase of 11.8% across 250g own-label butter blocks in the five grocers.
“Tight supplies of milk and cream, due to adverse weather conditions, have led to wholesale butter prices soaring, currently 60% higher than a year ago,” said Harvir Dhillon, BRC economist. “Prices should start to settle in spring when there will be a greater supply of milk.”
His comments came after a recent AHDB report stressed that butter supplies “continue to run very tight as many are electing to sell the cream rather than go to the expense of churning butter”.
The board said not much British product is available for any short-term coverage.
Tesco told The Grocer it remains competitive across own brand butter lines and it continues to support the British dairy industry and its supply partners.
All retailers were approached for comment.
Published on The Grocer, 14th November 2024