Spot prices for bulk Irish butter have slipped below €4,000/t this week, as buyers across Europe continue to stockpile product ahead of Brexit day.

Industry sources have described the current stockpiling by retailers, bakeries, food service companies and dairy processors right across Europe as the equivalent of a large number of mini-interventions.

Mass storage

The mass storage of private stocks of butter is keeping trade moving, but weighing on spot market prices for butter.

Last week, bulk butter prices reported by the Dutch Dairy Board fell by €70/t to €4,100/t, while spot market prices for Irish butter are currently trading below the €4,000/t mark.

In Germany, supermarkets agreed a contract price for butter of €4,120/t for the month of March, which is down on the previous month's agreed price of €4,480/t.

Downward trend

Despite the downward trend on spot markets for butter, retail sales of butter are holding up quite strong.

Retail demand for butter was very strong over the Christmas period for Irish co-ops and this trend is reported to be holding up well into 2019.

In most cases, retail prices for butter are trading €600/t to €1,000/t above the price of bulk butter.