PARIS, France: Across Europe, the soaring cost of butter is leaving a bitter taste for consumers and businesses alike.
After a year of post-pandemic inflation compounded by the war in Ukraine, the price of butter has risen sharply, making holiday baking and everyday cooking more expensive.
In Paris, pastry chef Arnaud Delmontel remains committed to tradition despite rising costs. “A croissant is made with butter,” he said, refusing to switch to margarine like some competitors. Butter prices have climbed 25 percent since September, Delmontel noted, putting pressure on bakers to either cut portions or absorb the added expense.
From October 2023 to October 2024, butter prices rose 19 percent on average across the European Union, with increases as high as 49 percent in Slovakia and 40 percent in Germany and the Czech Republic, according to the EU’s executive arm. Reports indicate prices have continued to rise in recent months.
Economist Mariusz Dziwulski, a food and agricultural market analyst, attributes the spike to a global milk shortage caused by declining production in major dairy regions like the U.S. and New Zealand. Higher energy costs from the war in Ukraine, and droughts affecting agricultural output are also contributing factors.
In Poland, where butter is considered essential, prices have surged 49.2 percent in the past year to nearly 37 Polish zlotys ($9) per kilo. The government recently released 1,000 tons of frozen butter from strategic reserves to stabilize the market.
“Every month, butter gets more expensive,” said 77-year-old shopper Danuta Osinska in Warsaw. She and her husband, living on modest pensions, have reduced their butter consumption despite preferring it over margarine. “There is no comparison,” Osinska said. “Things are getting harder and harder.”
The rising cost of butter has become a political issue in Poland, with opponents of Prime Minister Donald Tusk blaming his administration for inflation. Grocery chains have engaged in price wars, sometimes keeping prices artificially low at the expense of dairy farmers, according to Agnieszka Maliszewska, director of the Polish Chamber of Milk.
While butter inflation is particularly challenging for northern and central European countries, southern Europe, where olive oil is the preferred fat, has been less affected. Even in Italy, where butter prices have risen 44% since last year, the impact is less pronounced due to lower consumption.
For Delmontel and other bakers, the challenge is to balance rising costs with maintaining quality. “Or else you squeeze it out of your profit margin,” he said, refusing to compromise on the size or quality of his croissants.
