MD_DA104 Butter/Butteroil - Europe Report 21 - Released on May 27, 2021 In Western Europe the butter price range moved higher at each end. The same result was recorded for the butteroil price range. Butter and butteroil prices tended to increase each week of the two-week reporting period. French butter prices were highest, followed by Netherlands, then Germany. France has been off to a slow dairy production start for 2021. Many customers for butter produced in France have strong sourcing preferences. Thus, the lower production is a substantial factor in moving French butter prices higher than in some other countries. That is also a contributing factor resulting in a somewhat wide price range. Overall packaged butter demand is strong in Western Europe. Promotions for branded butter have declined. That has transitioned demand to private label butter. Increasing cream prices are helping to support firming butter prices as well. Bulk butter demand is also increasing. It is believed that a number of buyers have not secured butter for June yet. Higher buying activity from brokers for uncommitted June butter is noted. That may shift some near term sales away from manufacturers to brokers. The strongest current contracting seems to be from EU buyers rather than for export. Western Europe, 82% Butterfat, Free on Board - Port Butter Price Range - $/MT: 4,800 - 5,400 Western Europe, 99% Butterfat, Free on Board - Port Butteroil Price Range - $/MT: 5,250 - 6,500 Information for the period May 17 - 28, 2021, issued biweekly Secondary Sourced Information: EU butter production January – March 2021, 530,000 MT, decreased 1.3 percent from January – March 2020 according to Eurostat data reported by Eucolait. March 2021 production increased 0.3 percent. French butter production January – March 2021 decreased 6.1 percent YOY according to CLAL data made available to USDA. EU exports of butter during March 2021, 22,459 MT, decreased 11 percent from March 2020 according to Eurostat. January – March 2021 butter exports, 52,866 MT, decreased 24 percent from January – March 2020. EU exports of butteroil during March 2021, 3,375 MT, decreased 19 percent from March 2020 according to Eurostat. January – March 2021 butteroil exports, 8,690 MT, decreased 31 percent from January – March 2020. Published by: Dairy Market News - Madison, WI Eric Graf, 608.422.8590 Email: Eric.Graf@usda.gov Additional Dairy Market News Information: Dairy Market News (DMN) by Phone: (608)422-8602 DMN Website: https://www.ams.usda.gov/market-news/dairy DMN MARS (My Market News): https://mymarketnews.ams.usda.gov