IRISH BUTTER output has increased by 13% to 31,000 tonnes this year, despite a 40% drop in wholesale prices, according to the latest figures from the Central Statistics Office.

Despite poor international demand and collapsing prices, Irish production of butter is expanding, but wholesale prices have dropped by 40% in the last 13 months, falling from €6000 per tonne in June last year to €3630 per tonne, presently.

There is concern that when butter prices were still high, companies altered their recipes to include less dairy-sourced butter, which could play into a reduction in butter demand longer term.

The Irish aren’t alone in feeling the squeeze. Butter producers across Europe have seen a substantial drop in their wholesale value in the past 12-months.

The latest Dutch auction price for butter was €3630 per tonne which is a huge decline since prices hit record levels in autumn 2016 at €6960 per tonne. Dutch wholesale prices were still averaging €6000 per tonne this time last year.

The latest reports from Britain show prices at similar levels to Holland, at €3630 per tonne which has dropped from an average of €3850 per tonne since May, and €5745 per tonne this same time last year.