As mentioned in the previous post many buyers were caught unaware yet again as butter soared in price over Q2 due to ever increasing demand. The price neared the astounding levels seen in 2017 where record prices were shattered.
That record price hike was considered initially as a freak occurrence but it now seems to be making itself a permanent feature in the market as prices are now hovering around the €5500/ton mark. This is considerably lower than the €7000/ton peak reached last year but when you consider the historical butter prices it is still at an extremely high level. This must be of huge concern to buyers all across the industry as it is fair to assume absolutely nobody foresaw this prolonged period of steep prices. Is it likely to come back? Simple logic would have to say surely soon but all the fundamentals we have based predictions on in the past now look increasingly futile in an unpredictable environment!
CONTINUE READING: Q3 DAIRY MARKET REPORT 2018
- Market Overview
- Butter prices soared due to increasing demand
- Mozzarella prices increase more than other cheeses
- Brexit negotiations and the UK dairy market
- Heatwave leads to feed shortfall