Bakers Prefer Butter, Contributing to Rising Prices
Source: dairynews.today
Demand for dairy products is soaring as consumers worldwide prioritize dairy over plant-based alternatives, driving butter prices to new highs.
Fonterra, a major co-operative in the dairy industry, is observing a significant shift from plant-based ingredients to dairy fats among its bakery clients. Richard Allen, Fonterra's President of Global Ingredients, has noted that consumers, particularly in China, perceive dairy products as healthier and more premium. This rising preference is causing increased global demand for dairy products like butter and cream.
During the last Global Dairy Trade (GDT) auction, butter prices surged by 3.8% to a record high of US$7,992 per tonne, marking the tenth consecutive auction with prices above US$7,000 per tonne since January. Allen also highlighted the impact of drought in the North Island on butter supply, though adjustments have been made to increase skim milk powder and protein streams to support production. According to NZX dairy analyst Rosalind Crickett, the imbalance between supply and demand is leading to unprecedented pricing for butter globally.
During the last Global Dairy Trade (GDT) auction, butter prices surged by 3.8% to a record high of US$7,992 per tonne, marking the tenth consecutive auction with prices above US$7,000 per tonne since January. Allen also highlighted the impact of drought in the North Island on butter supply, though adjustments have been made to increase skim milk powder and protein streams to support production. According to NZX dairy analyst Rosalind Crickett, the imbalance between supply and demand is leading to unprecedented pricing for butter globally.
