Stock Up on Butter Now—It May Be More Expensive This Holiday Season

The holiday season is right around the corner, and so are trips to the grocery store to stock up on ingredients to whip up your favorite seasonal baked goods. However, you may notice a price increase on a baking staple while you shop—butter.

The fat from milk and cream is used to make butter, and a lot of milk is required. The uptick in butter prices is largely due to the decrease in milk supply, which is a result of diseases in dairy cows in Europe. While supplies are low, the demand for butter has increased, according to Reuters.

Since supplies are limited and milk is required to make many ingredients, dairy farmers are opting to produce more profitable products—such as cheese. Since butter is often purchased more during the holiday season, with low supply and high demand, prices will be higher than normal.

Production of milk in Europe grew 0.7 percent between January 2023 and July 2024, according to Reuters, adding that during this same time, butter production fell 1.6 percent while cheese production gained 3.2 percent.

According to the U.S. Department of Agriculture (USDA), butter prices have risen to $3 per pound, up 15 percent from last year due to fewer cows and less milk produced. "Tighter milk supplies and firm demand are expected to carry the higher price outlook into 2025," the USDA said.