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HAVE YOU SEEN the price of butter lately?
It’s been rising for a few years now, along with other household staples.
Central Statistics Office (CSO) this month published figures showing that the average price of a pound of butter in Ireland had gone up by 70 cent since this time last year.
But what are the factors behind this price hike? Is it simply a case of supermarket price gouging or is there more to it?
For context, there has been a gradual drop in global milk production in recent years, which has resulted in price volatility for dairy products.
This has been down to a variety of factors including poor weather conditions hampering production, as well as energy and fertiliser price inflation impacting the agriculture industry worldwide.
Ireland’s total milk collection from the national dairy herd in 2024 declined by 2.3% on 2023, resulting in somewhat of a price increase due to an increase in demand relative to supply.
The 70 cent increase in the price of butter on last year – a rise of almost a fifth – is in line with an EU-wide increase of the same amount in that period.
The Journal contacted the Irish Creamery Milk Suppliers Association (ICMSA) for more information.
Association President Denis Drennan said increases in production costs for Irish dairy farmers over the past year meant farmers have needed to recoup their losses.
“If our costs go up then we are perfectly entitled to pass those costs on along the chain in the same way as everyone else does,” Drennan said.
Irish dairy production was heavily affected by adverse weather conditions last year as a wet spring and early summer produced suboptimal grazing conditions for cattle, as well as poor silage conversion to sustain them over the winter months.
However, Drennan says a positive autumn season brought things back to relative normality.
What are supermarkets charging?
A quick comparison across the major supermarket chains in Ireland shows relative price consistency for a pound of butter as consumers continue to battle rising charges for essential groceries across the board.
Tesco, Supervalu and Dunnes Stores are each charging €4.95 for a pound of Kerrygold butter.
Similarly, Aldi are selling a pound of Connacht Gold for €4.39. Own brands of Tesco, Dunnes and Supervalu all come in at €3.79 per pound.
Aldi’s alternative Kilkeely brand is slightly cheaper at €3.69.
However, if we compare the price of a block of Kerrygold butter in Tesco today with the price of same from a year ago, we note a €1.06 increase in price – outpacing the national rate of increase of 70c.
Compared to last year, Tesco has decreased its price of a two-litre carton of milk by 4c, with the product currently standing at €2.45.
Aldi has increased its price by 36c to now stand at €2.45. A 200g block of mature cheddar cheese in Tesco will now cost you €3.75, an extra 25c on last year’s price.
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