The Butter Crisis: A Global Shortage Drives Up Prices

Rising Costs Challenge Pastry Chefs

Arnaud Delmontel, a Parisian pastry chef, witnesses the escalating cost of butter, a crucial ingredient for his delectable croissants and pains au chocolat.

His dedication to traditional methods prompts him to reject the use of margarine, which he believes distorts the essence of a true croissant.

Europe's Butter Woes

Butter, a culinary delight, has become an expensive luxury across Europe. Soaring inflation, exacerbated by the war in Ukraine, has dealt another blow to consumers.

Butter prices have surged by an average of 19% in the European Union from October 2023 to October 2024, with notable increases in Slovakia (49%), Germany (40%), and the Czech Republic (40%).

Global Milk Shortage

The global butter shortage stems from declining milk production, most notably in the United States and New Zealand, a major butter exporter, explains economist Mariusz Dziwulski.

The Importance of Butter in Europe

European butter boasts a higher fat content than its American counterpart and is sold in standardized weights, preventing food producers from resorting to shrinkflation.

Culinary traditions heavily reliant on butter, such as in France and Poland, have been particularly affected by the price increase.

Political Implications in Poland

The butter shortage has become a political issue in Poland, with presidential candidates blaming the centrist government and the national bank governor for the high prices.

Agnieszka Maliszewska, director of the Polish Chamber of Milk, attributes the inflation to a combination of domestic, EU-specific, and global factors, including reduced milk production due to slim profits and challenging labor conditions for dairy farmers.

Climate Change and Bluetongue Disease

Economist Dziwulski suggests that droughts and insect-borne diseases like bluetongue may also impact milk production.

US Milk Costs and Consumer Sentiment

The United States has also faced a butter price spike, influenced by feed costs and extreme temperatures. Butter prices reached $10 per kilo in September, contributing to overall grocery price increases during the presidential election.

Southern Europe's Butter Consumption

Southern European countries like Italy, which rely heavily on olive oil, have been less affected by the butter inflation due to their cultural preference for olive oil.

Adapting to Rising Costs

Pastry chef Delmontel is under pressure with rising costs. Despite his refusal to use margarine, some bakers are resorting to reducing croissant size.