How Australia's butter crisis will impact Christmas
Australia’s butter shortage is beginning to push up the price of Aussie favourites such as meat pies, croissants, cakes, buns and biscuits.
Shoppers will face a Christmas period of expensive baked goods as butter prices hit record highs and bakeries struggle to cope with the extra expenses.
Industry insiders believe there are three factors that are contributing to this national shortage.
Experts said falls in the production of butter can be attributed to the health drive towards the consumption of full cream milk rather than skim. The fat that is skimmed off the milk is used to manufacture butter.
There has also been a greater demand for butter as shoppers switch from margarine to butter for health reasons.
Industry insiders also highlighted that milk production has dropped seven per cent in the last year.
President of the National Bakery Industry Association, Brett Noy, told The Courier Mail that bakeries are using French butter due to the expensive price of Australian butter.
“Over a year ago a 25kg box of Australian butter was $100 now it hits $240. We don’t want to see a shift away from support of local dairy farmers but we are trying the best we can to keep prices down at the till,” Brett said.
Brett said if there is a further increase to the price of butter, bakeries will have to consider using margarine in the baking process.
“Of course we don’t want this. There will be a big impact on taste and nutritional value,” he said.
In the last 18months, the price of butter has risen by 140 per cent.
Industry analyst John Droppert believes smaller businesses will be impacted most by the national shortage.
“Many small businesses operate on a month-to-month basis and buy from wholesalers. They are the ones that can’t handle the squeeze,” he said.
He predicts the butter shortage will continue until next year.
What do you think of the increase in price of butter in Australia? Has it affected your weekly shop? Tell us in the comments below.