Butter production in a number of large dairy-producing EU member states surged ahead in the first half of 2018, as processors reacted to the high price of butter. In Ireland, butter production for the first five months of the year (January to May) stood at 89,400t, which is more than 3% ahead of the same period last year.

Since the end of quotas, Ireland has grown to become the third largest butter-producing country in Europe, pumping out close to 230,000t per annum.

In France, the second largest butter producer in Europe, production for the first five months of 2018 is up more than 5% year-on-year at 202,000t. It’s a similar story in the Netherlands where butter production from January to May this year rose almost 6% to 64,100t.

Sliding down

Interestingly, butter production in Germany, Europe’s largest producer, is down more than 2% in the first five months of 2018 to 215,700t. Germany typically produces close to 0.5m tonnes of butter per annum.

Across the 28 EU member states, butter production in the first five months of 2018 is estimated to be up almost 2% year on year to 945,800t.

Despite the strong increase in butter production across many large dairy-producing EU member states, butter stocks in storage or warehouses are still estimated to be minimal. This shortage in stocks has underpinned much of the price volatility that has characterised butter markets in the last year.