The butter market continues to be characterized by firm trends. Prices for block butter are now approaching the peak values of 2011. The market is still in short supply and the data for the low production period in the fall and winter suggest that it will remain in short supply for some time to come. After all, only 77,000 tons had been registered by mid-July, 41,000 tons less than in 2012. The storage programme with EU subsidies ends on 18 August. After that, it will probably be another two weeks before the final data is available. However, it is already clear that there will be considerably fewer quantities available to supplement supply during the low production period in autumn and winter than in 2012. At the beginning of August, the shortfall compared to the previous year had grown to over 42,000 tons. The market will therefore remain tightly supplied, even if production in the second half of the year exceeds the previous year's volumes. For the time being, however, production will decline in line with the seasonal rhythm until November. After all, many dairies have been responding to the attractive market prices for some time by increasing production, which secures them high revenues for the fat content of the milk supplied to them.
| EU butter market | 2011 | 2012 | 2013 | '13/'12 | '13/'12 |
| 1.000 t | +-% | ||||
| Production Jan - May | 833 | 880 | 867 | -13 | -1% |
| Applications for private storage with EU aid by July 21 | 88 | 119 | 77 | -41 | -35% |
| Exports Jan - May | 56 | 49 | 51 | +2 | +4%* |
| EU share of international trade, Jan-May | 20% | 17% | 17% | -0%** | +4%* |
| *) In terms of volume. **) Based on market share. | |||||
The prices for loose goods have also once again overtaken the prices agreed at the beginning of July for small packaged goods for food retailers. It is therefore possible that the end of the line has not yet been reached there either. Nevertheless, it is difficult because high prices are not good for sales. So far, however, the effects appear to be limited. Exports to third countries play a lesser role than with other milk products. This is because EU goods are only competitive with special qualities that are in demand in certain markets. In any case, the EU has not made large quantities available for export for a number of years, especially as prices on the EU internal market are significantly higher than those quoted on the world market. However, the standard customs duty rate of €1,898/t stands in the way of larger imports. However, butter is not in plentiful supply on the world market either. By May, New Zealand had only imported 22,000 tons into the EU from the WTO minimum access regulation of around 87,000 tons per year, for which a reduced rate of duty applies.
