In January, the average price of butter was $3.67 per pound. In September, it was $4.70 per pound.
Due to the increasing cost of feed and an ongoing labor shortage, buying and maintaining cows is more expensive for farmers than in previous years.
And while some technological innovations fueled production, environmental factors did the opposite. Extreme temperatures, floods, droughts, along with frequent and intense storms"weighed on productivity growth,""Such conditions can affect the availability and quality of feed as well as the physiological functioning and reproductive health of dairy cows," the report reads.
Processing plants are also weathering an ongoing labor shortage. Plus, cold storage reserves are running low. In August 2022, there was about 282.6 million pounds of butter in storage, down from the 362.7 million pounds in August 2021,If you're looking to save on butter, price comparing is wise. Butter at Trader Joe's, for example, is about $1 less per pound than at Target.up to 12 months"As you head into the holiday baking season, demand is not going to slow," Grawe says.
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