Butter prices are up 40% over last year and are predicted to rise further, due to a variety of factors.
Butter prices are up 40% over last year and are predicted to rise further, due to a variety of factors.
The average price for Grade AA butter was $2.02 per pound on Dec. 11, up 40% from the same point in 2020. It was also up 3.7% from the previous month, although butter sales usually surge around Christmas due to holiday baking and other cooking.
The main reason for the price spike is a reduction in the milk cow herd. According to USDA data, the herd is down about 15,000 head from last year. Other factors include labor difficulties and increase prices for packaging materials.
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