Butter in the EU doubled in price

16.06.2017

The reduction in milk production in member countries of the European Union after the abolition of national quotas in April 2015, has led to the doubling of prices of butter in just one year, said Wednesday the broadcasting company RTBF

According to RTBF, the cost on the world market tons of oil, the main product in the manufacture of which is milk, has reached 5 thousand euros per tonne. The growth in oil consumption, according to the Belgian Confederation of the dairy industry, for three years, grew by 7%.

The higher cost of oil, in turn, benefit the long-suffering European milk producers, the prices of their products in the first months of 2017 jumped 34% to 35 cents per liter, which allows you to keep the break-even production.

In this case, the losers were the consumers, sales network has already started to increase the price of briquettes butter. The growth of prices of this valuable food product will inevitably entail rise in price of confectionery, a key ingredient which it is also said RTBF.

On Thursday, the food and agriculture organization of the UN (FAO) reported that, in particular, the global price index for dairy products increased in may by 5.1%, to 193 points; stable domestic demand in Europe and North America contributed to the growth of prices for butter, however, the large reserve of inventories in the EU have restricted the growth of prices for nonfat dry milk.


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