Butter: new reality changes consumer behaviour
July 16, 2020 at 1:23 PM ,
Der AUDITOR
Germans prefer to stay at home
In Germany, a ZDF survey has found that around 37% of citizens intend to stay at home this year. The Association of the German Confectionery Industry reckons that this will have a sustainable impact on domestic ice cream consumption. Average consumption ranged at 8.3 litres per capita in 2019. The fact that many people are staying at home rather than travelling has notably driven up consumer demand for butter in the supermarkets and shipments to the retail markets have risen.
This has driven up the higher end of the price range for print butter at the Butter and Cheese Exchange in Kempten to EUR 3.60 per kg. Bulk butter is, however, trading in a firm range of EUR 3.40-3.45 per kg as trading takes a break in summer. Bulk butter prices have declined to EUR 3.47 per kg in Poland again.
|
Butter |
|
|
Location |
Price |
|
EXW Poland |
EUR 3,470/mt |
|
EXW Germany |
EUR 3,400/mt |
|
EEX |
EUR 3,446/mt |
|
GDT |
USD 3,717/mt |
|
Trade sources |
|
EU ships less butter to UK
EU butter exports have risen by 37% in January through to May. After leaving the EU in January, the UK features as the main export destination. While as much as 30,058 metric tonnes of butter were shipped to the UK in January to May 2018, it should be noted that shipments have now declined to 21,446 metric tonnes, thereby reflecting the uncertainty Brexit is generating.
The UK currently is in a transition period, which ends on 31 December. Negotiations on any future trade deals are, however, fraught with difficulty with the risk of a no deal Brexit increasing. Uncertainty weighs heavily on any trading activities between the EU and the UK. By contrast, shipments to the US have nearly doubled since 2018, when the EU exported 9,942 metric tonnes of butter to the US. After taking a dip in 2019, shipments to Saudi Arabia have sharply recovered again by 165%.
|
EU butter exports to third countries, January-May, in mt |
|||
|
Destination |
2019 |
2020 |
Diff. |
|
UK |
25,005 |
21,446 |
-14% |
|
USA |
12,609 |
18,747 |
38% |
|
Saudi Arabia |
3,559 |
9,415 |
165% |
|
Others |
45,056 |
68,402 |
52% |
|
Total |
86,229 |
118,010 |
37% |
|
Eurostat |
|||
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