Butter prices has reached an average record high in the Czech Republic.
The price of butter has risen to the highest yearly, average cost in Czech history. So far, butter is on average 21.14% more expensive than it was in 2016, according to CLAL.
One ton of butter has reached an average wholesale cost of 103,295.85 CZK, so far this year. In May, butter prices reached 107214.51 CZK, according to CLAL. This is a 2.37% increase in price from April of this year. Although, butter prices in 2017 have not been consistently rising. Butter prices dropped consistently from January up until April, according to CLAL.
CLAL is an Italian economic consulting firm, analyzing global dairy markets.
The price of dairy in May was 37.43% higher per ton than the cost of butter in the same month of 2016. However, over the last few year, costs have not been constantly increasing, nor is butter the most expensive it has ever been. In September of 2013, butter cost 117672.37 CZK, 8.8% higher than it is now. Additionally, prices were dropping from November, 2016 up until April, 2017. However, by yearly average, 2017 has still seen the highest costs.
While butter prices are currently at an average record high, the trends are difficult to fully understand. Some believe that raising butter costs is due to a change in demand. In the 1990’s vegetable-based margarines were much more common than butter. With people using butter over margarine, demand for butter has risen, according to an article by TN.cz.
Experts have also said that butter prices are expected to decrease, according to the same article.
The Czech Republic is not the only country experiencing elevated butter costs. In May, German butter prices exceeded Czech prices, reaching 130063.50 CZK.
Another chart depicting average monthly butter prices from 2010-2017: