Poland: Butter is getting drastically more expensive. Again
According to the latest analysis of nearly half a dozen retail prices, butter became more than 29% more expensive year-on-year in January.
According to experts commenting on the data, the situation in the butter market is still dynamic. If current inflationary trends and the increase in production costs continue, prices will continue to rise. However, they may normalize if raw material costs stabilize and competition between chains increases. By contrast, consumers are likely to see further increases before Easter.
Butter has again been rising dramatically in price recently. This is a result of rising raw material prices in Europe and on world markets. However, they do not go hand in hand with expanding margins of retail chains or manufacturers. On the contrary, retail chains, in an effort to curb the increase in the price of this product, are giving up a large part of their margins. At the same time, they are building the attractiveness of the offer for the customer
- assesses one market expert.
The price increase is significant. It reflects global and local inflationary tensions. The main reasons are the rising costs of raw materials, energy and logistics. Consumers should prepare for the fact that if the market situation does not stabilize, prices may continue to rise, although the growth rate may slow down.
However, analysts do not agree on how prices may continue to behave, and thus - what consumers need to prepare for in the near future. On the other hand, April will be Easter, and this is, after all, a period of increased butter purchases, due to the baking of cakes.
Retailers are adapting promotional strategies to current seasons and market conditions, including the cost of purchasing the commodity, demand dynamics and inflationary pressures. Butter, although a primary product, is subject to the same market mechanisms as other commodities. It is possible that the chains focused their promotional activities on other categories that generated higher margins or higher sales volumes in a given period
- concludes another expert.
Source: Farmer.pl