Europe Faces a Butter Crisis

In European countries, a butter crisis has emerged due to high price increases. Some supermarkets have imposed a limit of four packages for butter sales. Across Europe, the significant increases in butter prices due to costs and production shortages have become a problem for both consumers and economic authorities. According to data from the European Statistics Office (Eurostat), butter prices in EU countries rose by an average of 30% in February. Germany, with the largest population in Europe, also saw a 39.8% annual increase in producer prices for butter in January, according to the Federal Statistics Office (Destatis). The fact that these rates are significantly higher than the 2.5% inflation rate recorded in the Eurozone in January is noteworthy. Additionally, in Europe, butter is sold in 250-gram packages, forcing consumers to buy frequently used products frequently and experience price fluctuations more intensely. This situation undermines policies aimed at reducing inflation expectations. LIMIT OF FOUR PACKAGES IMPLEMENTED Consumers on the continent are paying the highest prices ever for butter, and supermarkets are organizing promotions for discounted butter to prevent panic buying. To prevent panic purchases, supermarkets are putting a limit of no more than four packages of butter (each 250 grams) per customer. In some supermarkets, butter is kept in special security shelves along with luxury products such as caviar. POLAND IS SELLING RESERVES In Poland, Germany’s neighbor, butter prices are on the political agenda. The country’s government has resorted to emergency measures as butter has become a luxury product. To balance the rising prices ahead of the May 2025 presidential elections, the Polish government announced in December 2024 that 1,102 tons would be released from the strategic butter reserve. The Polish Strategic Reserves Agency also announced that unsalted frozen butter would be sold to businesses for $7 per kilogram. COSTS INCREASED, PRODUCTION DECLINED Meanwhile, farmers in Europe are struggling with expensive raw materials and energy, low milk prices, and high transportation costs, leading to production difficulties in butter. Additionally, the increasing use of concentrated feed across Europe in recent years is said to have led to lower fat content in milk, resulting in decreased butter production. Last year, the number of cows in the European Union fell below 20 million, sparking intense debates on agricultural policy in countries with significant dairy and butter industries like the Netherlands and Ireland. Across Europe, farmer protests are increasing due to government climate policies and rising costs.