Brexit and dairy inflation has affected the price of butter in the UK with the cost of the breakfast essential rising by 42 percent in the previous year, reveals a report from market analysts Brand View. During the last 12 months, the price of butter has almost doubled as dairy inflation hits the region. With warnings over supply shortage, butter prices are skyrocketing in the major supermarkets across the nation. The newly released data from Brand View says that block butter prices were up 7% year on year across 80 products in the UK.
Manufactures delivered a warning last year that there could be a price rise for the butter products in the immediate future as frequent supply issues following the falling milk production and soaring wholesale prices were bothering them. But industry experts see the shelf price increase as a result of reduced marketing efforts and high prices on butter products. But they agree to the fact that Brexit has influenced the price of milk and dairy products significantly.
Agriculture and Horticulture Development Board analyst Patty Clayton was quoted by the Grocer magazine: “Prices are likely to have been at least partly affected by the higher wholesale pricing that came about on the back of the lack of product in the autumn. “If the stock situation had been strong, even though production had gone down, we might not have seen such a big increase in wholesale prices. “