Global prices for butter continue to show an upward trend. In April, prices rose by another 2.9%, marking the third consecutive month of positive dynamics. The cost of butter has reached a new historical high, as confirmed by the United Nations Food Agency. The main reason for the price increase has been the rising demand in Europe, where stocks of dairy fat have decreased.
This is reported by Finway
The backdrop for this increase is the rise in production volumes during the spring period. The overall food price index in April reached 128.3 points, which is 1% higher than in March. The most significant price increases were seen in grains, meat, and dairy products, while a decrease was recorded in the categories of vegetable oils and sugar.
It is worth noting that compared to April of last year, the food price index is 7.6% higher. However, it still remains below the historical peak recorded in March 2022, when prices surged due to the onset of Russia’s full-scale war against Ukraine.
Increase in Grain and Other Product Prices
Grain prices are also showing an increase: the index in April stood at 111.0 points, which is 1.2% higher than in March but 0.5% lower than last year. The rise in prices for all major types of grains resulted from a reduction in export stocks in Russia. Other major suppliers continue to maintain a stable export pace, and currency fluctuations, particularly the weakening of the dollar against the euro, also play a role.
Dairy and Meat Prices
Dairy prices continue to rise as well: the index increased to 152.1 points, which is 2.4% higher than the March figure and 23% higher than a year ago. In particular, prices for skimmed milk powder rose by 1.6%, while whole milk increased by nearly 30%. This is linked to sustained demand for dairy products and changes in export directions from Europe to Oceania.
Meat prices have also increased, with the index rising to 121.6 points, which is 3.2% higher than in March and 4% higher than the same time last year. The most significant increase was seen in pork prices, made possible by Germany’s recovery as a foot-and-mouth disease-free country, allowing it to return to export markets. Beef prices also rose due to steady demand and limited supply.
Sugar prices have decreased for the second consecutive time, with the index in April falling to 112.8 points, which is 3.5% lower than in March and 10.9% lower than in April of last year. This decline is attributed to concerns about the global economy and expectations of reduced demand from the food industry.