Butter Crisis in Europe Will Happen Until Christmas
Butter crisis in Europe will be lasting until Christmas. This situation occurred as Europeans are consuming more and more butter at a time when prices are skyrocketing, stockpiles are running low and dairy giants are warning of an imminent shortage, including a sharp increase in global demand from countries including China. Some customers also returning to the fairy product after recent studies questioned the link between butter and cardiovascular disease, thus supporting consumer enthusiasm for the product. As written on CNBC News, Kevin Bellamy, a global dairy strategist at Rabobank, argued that the recent lack of supply coupled with a “long term shift” among consumers back towards more natural products had also attributed to the sharp increase in butter prices which nearly hit double. Even one such study published in 2016, indicated that butter actually has more of a neutral association with mortality.
The butter crisis in Europe is having a big impact on bakeries, restaurants and other small businesses in the food industry across the continent. With butter prices jumped nearly 20% in June over the previous year and supplies dwindling, many have been forced to increase their own prices to maintain margins and keep survive. Butter crisis in Europe are so bad that Peder Tuborgh, CEO of U.K. dairy giant Arla in U.K. recently warned a month ago that there may not be enough milk and cream for everyone at Christmas.
It’s not the first time in recent years that we’ve had dark warnings of no cream with our mince pies. Global butter consumption is expected to rise by 3% in 2017. In China, the U.S. Department of Agriculture (USDA) predicts a 38% jump in foreign milk consumption. The Asian nation receives almost all of its dairy from Europe and New Zealand.