Butter prices up in Austria

Butter prices in Austria are increasing, according to Georg Strasser, president at the Austrian Farmer’s Association.”The per capita consumption of butter in Austria is about five kilos. If one assumes a price increase of 50 cents per quarter kilo, the additional cost is 80 cents per head per month. In the past, the prices were far too low and below the consumer price index, now they are appropriate,” he notes.

The reasons for the increase in butter prices are manifold. “The main reason for the higher price is fat price increases. Moreover, consumers are buying more butter again. The images of cleared rainforests for planting of oil palm plantations have led to a rethink,” explains the president.

The industry also relies on butter instead of on palm oil in the production of baked goods. Therefore, there is currently a higher demand on the market. However, due to the extremely low milk prices over the past two years, farmers have reduced production.

“If the demand is higher than the supply, this results in a higher price in the free market economy,” underlines Strasser.”We must not forget that we are coming from a serious milk crisis. Last year, the milk price was 26 cents net. About 1,000 dairy farmers had to stop production due to low prices. ”

Now the Austrian dairy farmers get a good 37 cents net for a litre of milk.

“This increase was urgently necessary, otherwise the death of the peasants would have continued incessantly. Now the farms can operate again,” the farmer-president says.

“The butter will not go out, as many media have already speculated. There is enough butter available on the market. Our farmers supply high-quality products; the Austrian dairy industry is unique across Europe. We produce genetic engineering-free and in the highest quality, which must also be worth a few cents more to consumers,” he notes.