A global surge in butter prices is creating new ripples across export markets. According to the UN FAO butter price index, global butter averages just over $7,200 per metric tonne at recent Global Dairy Trade auctions—a 54% rise from two years ago. This spike is driven by shrinking milk supplies amid drought and disease, especially affecting cream availability. Bakeries and confectioners worldwide face mounting costs. Notably, Poland has begun releasing 1,000 tonnes from strategic reserves to mitigate price and supply shocks. Meanwhile, New Zealand, France, and other high-consumption markets are grappling with shortages that could continue disrupting dairy trade dynamics in the near term.
Industry Insight:
The tight butter supply and soaring prices underscore how export-dependent markets can rapidly strain global dairy supply chains—highlighting India’s strategic opportunity to scale value-added exports while ensuring domestic stability.
Source : DAirynews7x7 Aug 11th 2025. Read full story here