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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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How much milk do we export though?? The price of beef has gone up massively as well but as far as I know we export 90% of our beef. A good journalist would explore this aspect of the price rise. A proper government would tackle this also to ensure local prices don’t increase massively. Remember the famine when Ireland were net exporters of food. Hmmm that was bad governance wasn’t it.
In Australia they have a similar problem with massive food prices for foodstuffs while exporting most to Asian countries
@Furious George – The Wasp: To answer your question: Ireland’s dairy sector is a world leader in exporting its goods. Estimates suggest that somewhere between 80 and 90% of our milk production leaves the country, leaving only a small fraction for domestic consumption. The beef sector follows a similar pattern – it’s commonly stated that around 90% of Irish beef is exported.
That means while we’re paying more at the shops, a huge portion of what’s produced is destined for foreign markets. Rising production costs, poor weather, energy, fertiliser hikes add to the pressure, which then gets passed on through the supply chain. Some have argued that this export-first approach can exacerbate local price rises. They point to past dealings like during the famine era when Ireland was primarily exporting food and use it as a cautionary tale of unbalanced governance.
It’s a classic case of tough trade-offs. On one hand, exports bring in vital revenue and support our agricultural community, on the other, there’s a growing concern about affordable food at home. Australia’s situation mirrors this, with booming exports to Asian markets contributing to steep local prices. Whether a government should intervene is a heated debate, as any move to prioritise local consumers might come at the expense of export earnings and the long-term health of the sector.
So yes, it’s a balancing act between supporting our farmers and keeping food affordable for everyone. Not an easy fix, but definitely food for thought.
@Furious George – The Wasp: well unfortunately we don’t have a proper government only a greedy bunch of liars wanting us to pay extortionate rate for absolutely everything from butter to fuel to energy cost for heating your home tax insurance hundreds of different types of taxes while they bask in glory with their extortionate salaries, it’s time Ireland got together people Power and took these so-called leaders out. That is what we need to do. , Because the prices are just going to continue rising and rising until nobody will afford anything only the people coming into the country which get everything
@Bren: Evidently you don’t believe in democracy. There was an election and a democratic government elected. We witnessed people power in action during the recent riots and the hooligans involved would not inspire confidence. Neither would the opposition.
@Vincent Alexander: what democracy are you talking about? The parties? I’ll join together they are all just born group of liars wanting to milk as much out of Ireland as possible while they travel around the world doing nothing giving billions away to every other country but spending it in Ireland. And don’t forget that’s our money prices have become unbearable in Ireland for absolutely everything and you and people like yourself go around supporting them. You seriously need to take a look at yourself and come back down to earth
As Ireland has become a rip-off nation thanks to our lovely government
@Bren: we should put people like you in charge! What could possibly go wrong?
@Bren: It’s you that needs to come down to earth when you are done ranting.
@Bren: like Zimbabwe did, when the thought they could run the country, run it into the ground
@Furious George – The Wasp: you need to read other news outlets to get good journalistm the journal is just a copy and paste form of journalistm
@Rafa C: raf that’s unreal analysis. Enjoyed reading it and agree with it . Top man cheers
@Furious George – The Wasp: Chat GPT is handy alright.
most fffg TD’s and councillor’s are farmers sons/ daughter’s or are farmers and landlords , it’s in their interest for sky high food prices and rents , racketeering and corruption is rampant just now with 330 ipas centre’s and 2 new ones green lighted in thurled in last two weeks ( Lowry denies involvement) @,corrupt fffg traitor’s
@jn: Can you explain how the price of butter is linked to the proximity of an IPAS centre? Or is this a classic case of correlation doesn’t equal causation?
Why are farmers getting huge subsidies, tax exemptions, and grants paid for other Irish rax payers when they are exporting 90% of what they produce??
@John Kelly: that’s an easy one. One of the foundation stones of the EU was to keep food affordable and plentiful. Hence food production was subsidised.
However due to environmental restrictions, weather related events, costs of production and low profit margins many farmers have reduced levels of production. So actually when farmers are subsidised it was the consumer benefitting rather than just the farmer
@Richard.: finally someone who knows what their talkin about.
@Richard.: I have no problem paying subsidies etc through my taxes for food consumed in Ireland, I have and I presume other hard working taxpayers have a very big problem paying massive subsidies for the 90% exported to other countries especially outside the EU
@John Kelly:
Do you have a problem consuming imported food that has benefited from subsidies in other countries?
Is there a direct correlation between the butter price and their share price over the same time?
It’ll be cheaper to sprinkle cocaine on your toast for breakfast soon enough!
@Dan The Man: Have you tried the new butter ‘McSpuds’. It comes in ‘assalted’ and ‘unassalted’.
I only buy Kerrygold butter or real butter. Any butter that contains seed oils or indeed any products that contains seed oils I try to avoid as seed oils only cause inflammation.
@peter kellegher: health food fads/warnings are in and out of fashion I find. They’ll expose the cholesterol bomb that most people will suffer in 18 months as result of the seed oil shun that we should adhere to now. Seed oil is also meant to be carcinogenic related now too but I read this has all only been brought to light by a very small number of researchers in the US in the last year. It caught momentum on SM but they had to admit recently findings inconclusive. Sticking with flora & rape seed oil etc.
@peter kellegher: I think anything sold as butter does not contain seed oils, etc.
I tried margarine once but it churns out butter tastes better. You butter believe it.
@James Leahy: I was going to make a butter pun too, but you’re butter off not knowing.
I’m sorry, I’ll show myself out…
@Daniel Skelton: your on a roll Daniel.Butter look next time
@James Leahy: butter up
People are becoming more aware of the bad content in food, Proper food like butter will see the price increase to discourage us from using it. Sick people make money.
Read an interesting article on the Journal about Irish dairy products particularly FFMP (fat filled milk products) which is a combination of palm oil and skimmed milk powder (under EU regulations it cannot be classed as milk despite this most Irish producers market it in Africa as milk. Over 60% of imported dairy products comes from Ireland. It’s having a massive impact on African farmers and Africas reliance on imported dairy products as it’s cheaper to import at €0.09 a liter than to locally produce at €0.21 a liter. Not related to this article but interesting nonetheless
@SOCOMJON: African take a lot of milk powder because it doesn’t require expensive refrigerators and has a long shelf life. But as their dairying gets up to speed, fresh milk will probably displace the powdered milk.
Bought a tub of butter in Lidl the other day for 0.89c – I know it’s crap butter – but it’s 89c – you have choices.
@Rafa C: 89c is enough to put me off .
@kevin rock: The prices are udderly ridiculous
@Rafa C: That’s because it’s made from UHT milk. But there’s no demand for that because its shi..
@Rafa C: Yes. If you don’t care about the quality of what you put in your stomach.
@Rafa C: Throw that in the bin immediately
@Rafa C: it’s only meant for use in baking…scones, cakes etc – not real butter at all. Tesco has a similar baking butter for much the same price too.
I only eat country butter, bought at specialist delicatessens
@Mr. Biggins: Wow, an amazing story! Please regale us with more
@El Sparko:No need butter wouldnt melt in his mouth.
@Mr. Biggins: i import it from Argentina, 23 euros, fair price I say. Never mind the air pollution it causes, I don’t belive in global warming either, it’s not speeded up no matter what scientists say. Bit of an ice age coming early will do my kids alot of good.
@Mr. Biggins: “country butter”? Is that code for butter that can’t be made by lgbtq, SF, Palestinians, climate activists, refugees, special needs kids, social welfare claimants, democrats, opposition leaders…?
This artisan butter sounds very pricey? You can afford it I suppose, with the blood, sweat & tears of the tenants paying their rents on all your 8 properties?
Mad how much the price of groceries has gotten.
Rafael C and Furious George said essentially the same thing. So, I think either one of them is looking over the shoulder of the other or, they got their answers from a bot.
@AnthonyK: hi, I made those points myself actually as I am interested in beef exports is all. Cheers Anthony, think raf was responding to my points. Quite well I thought. Anyway, spuds on and a couple of beers for the Ireland match now
Did André overdo it on the spuds?
@Luas Vuitton – Penneys Drag Queen: no he was busy getting the horse ready for France.
It’s pretty clear why the price of butter has gone through the roof recently. There has been a very poor crop season globally. Dairy farmers rely heavily on grain and feed to raise cows. With global crop failures and price hikes in grain thanks to the conflict in Ukraine (the breadbasket of Europe), farmers have seen their production costs rise and this gets passed on to consumers. Fuel costs have surged as well thanks to the carbon tax increases across the European Union, adding to transportation expenses, which makes the cost of delivering butter to shelves higher. Still though, we should consider the global perspective. I’m based in Fort Worth. Butter costs here are significantly more expensive than in Ireland. Kerrygold can fetch up to $8 dollars in some neighbourhood grocery stores.
Endless taxes that’s why.
This is a silly story. It is very clear that butter is cheapest in Aldi. Butter is butter. No difference whatsoever in the end product of milk fat between one brand and no brand. Just buy buy butter monthly in Aldi and stick it in the fridge.
Because farmers are the same as everyone, greedy
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