Butter prices surge before Christmas in Czechia
As the holiday season draws near, Czech households face a bitter challenge to their holiday baking traditions: soaring butter prices. With a 40% year-on-year increase, the cost of butter reached over 70 crowns in some stores. Some, including Agriculture Minister Marek Výborný, have raised concerns about possible price manipulation.
In October, the average price of a 250-gram block of butter reached 59 crowns, with some stores charging over 70 crowns—a 40% increase from last year, prompting concern among households planning holiday baking.
Agricultural analyst Petr Havel suggests that some relief may come through retailer discounts, bringing prices below 50 crowns in some cases. However, he warns that substantial price drops are unlikely until after Christmas, with a possible 10% decrease expected early next year as milk fat supply stabilizes.
Multiple factors are driving the price spike, including higher milk procurement costs, a milk fat shortage, and rising labor and energy expenses, compounded by the energy-intensive nature of dairy production. That said, Agriculture Minister Marek Výborný has accused dairies and retailers of price manipulation ahead of the Christmas season. Food producers attribute the high cost of butter to large mark-ups by supermarket chains.
“I’m saying that something is not right. I don’t have the tools to see whether or not there is a disproportionate profit on butter because of the law on prices. That ability falls under the responsibility of the Ministry of Finance or Financial Administration.”
As prices continue to rise, consumers are left with few options but to bear the cost. With the holiday season around the corner, many are questioning if prices will ease or remain high for the foreseeable future.
Chairman of the Czech-Moravian Dairy Association Jiří Kopáček blames the dairies for the increase in butter prices. The main problem, he said, is that the fat content of milk has been declining for several years and milk fat is missing from the market, which is driving up its price. He also pointed to the increased production of other dairy products.
"This year, in nine months, we have produced a surplus of 10 500 tonnes of cheese. That leaves less fat for butter and producers have to use more of it.”
Grocers claim that Výborný's statements are based on inaccurate information and deny responsibility for the high cost of butter. In a Monday press release, the Czech Food Chamber pointed to rising costs of labor and energy, but especially to high retail mark-ups, noting that chains increased these by 15 percent in September after deducting VAT.
According to the food producers, some Czech dairies have to buy cream to produce butter, whereas in January they bought it for CZK 60 per kilogram, now it costs over CZK 100.
