Butter shortage looms

A butter shortage has hit the industry right before Christmas.

Butter costs have hit record highs as the baking industry faces a critical shortage of butter.

National Bakery Industry Association president Brett Noy said bakeries have been using French butter as the cost of Australian butter has risen by 140 per cent in the last 18 months.

“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,” he said.

Mr Noy said that another price hike could result in bakeries using margarine to bake instead of butter.

“Of course we don’t want this. There will be a big impact on taste and nutritional value,” he said.

Dairy Australia’s industry analyst John Droppert said smaller businesses will suffer the most from price hikes.

“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.

The butter shortage has been predicted to continue until next year.

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