Butter prices have taken a fair hit in the last number of weeks. The fall is between 10% and 20% depending on what market you look at.

Butter prices in the US have also taken a dip of late.

We must keep all this falling in context – the quotes and prices were up above €7,000 per tonne, which was a long way from the €3,000 per tonne we had in the past.

So, if they are back closer to €6,000 per tonne, it is still a decent price with a powder price where it is.

Internationally, Ireland is getting some of the blame for offering product on to the global market at prices which make it competitive.

Plentiful

The analysts are now saying butter is more plentiful and stocks are building in some parts of the world.

The good price that was there was convincing a lot of dairy processors across Europe to make more butter.

The US butter market is tight on supply and prices were at record levels, but, again, there has been a downward fall in prices. New Zealand butter is now also more competitive for European consumers.

As we have talked about previously, dairy products are not insulated from the inflation that is happening on food. Consumers with a budget will downsize and will also look for cheaper alternatives if possible.

Alternative oils for cooking and baking are also lower, which again puts a bit of price pressure on butter to readjust.

The Christmas trade should help steady the market and both buyers and sellers will be keen to lock in quantities well in advance.