Butter intervention stores, opened at the end of February, are being snubbed by German dairies on the grounds that supermarket prices are now well over 3.00 Euros per kg. Even wholesale prices are above the current intervention offering of 2.94 Euros per kg.
Prices could go even higher in Germany this spring due to a reduction in milk supply brought about by the expectation of over-production of the national quota.
This has led to milk being channelled into dairy products with added value such as yogurts, spreads, desserts and certain cheeses.
Items such as butter and milk powder are manufactured from milk not required for these product lines