These are the reasons

Butter prices in Austria are skyrocketing

Why butter is so expensive again (symbolic image)

(Bild: Adriaan van de Venter/stock.adobe)

While inflation is falling, butter prices in Austria are continuing to rise. In Austrian supermarkets, a 250 gram packet recently cost 2.59 euros. According to forecasts, however, there could be further increases. 

Due to the situation on the butter and milk fat market, further price increases could become necessary, according to the food company Spar. 

Spar emphasized that butter prices in Austria are heavily dependent on the international market.

Milk fat is becoming scarce
With a domestic supply of around 75 percent, the Austrian market is dependent on imports. "The high international demand for milk fat influences the price in Austria." Spar pointed out that, from an international perspective, the scarcity of milk fat and rising farm milk prices play the biggest role in the price trend. There are no difficulties in procuring sufficient quantities of butter from suppliers.

The high international demand for milk fat influences the price in Austria.

Spar Österreichische Warenhandels-AG 

Current availability "challenging"
Rewe Austria (Adeg, Billa, Penny) explained that the current availability of goods in the butter segment is "challenging". Regarding price increases in the butter segment, the company said: "We stock dozens of butter products and are closely monitoring market developments." The current demand has a considerable influence on supply and could "lead to bottlenecks in the range at certain points".

Record price for butter in Germany
Meanwhile, the record price in Germany, which was set over two years ago, has been surpassed. Since this week, consumers have been paying 2.39 euros for a 250-gram packet of own-brand German butter at supermarkets and discount stores.

"This is the highest price ever seen in Germany," explained Kerstin Keunecke, Head of the Dairy Industry Division at Agrarmarkt Informations-Gesellschaft (AMI), according to Deutsche Pressse-Agentur. This means that butter will cost 10 cents more than in summer 2022, when the previous peak was reached.

Price increases in Germany also not ruled out
Hans Foldenauer, spokesperson for the German Dairy Farmers' Association (BDM), also does not rule out the possibility of butter prices rising further. When prices in Germany will fall again is uncertain and depends on the development of milk volumes delivered, their ingredients and demand in the coming months.

Butter prices had already risen sharply in 2022 due to the war in Ukraine and the energy crisis. According to the Federal Statistical Office, consumers in Germany paid 41% more for butter in August 2024 than in 2020.