Butter Oil Price Trend and Forecast

Butter Oil Regional Price Overview

Get the latest insights on price movement and trend analysis of Butter Oil in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

 

Butter Oil Price Trend for Q1 of 2025

The European butter oil market experienced mixed trends during the first quarter of 2025. Early in the quarter, prices declined as buyer sentiment weakened, and the market corrected after a period of record highs. This downward movement was supported by increased availability, stable milk fat output, and softened demand. However, as the quarter progressed, supply-side tightening began to shift market sentiment.
 

Butter Oil Price Chart

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Contributing factors included reduced herd sizes, higher milk fat content, and trade uncertainties between Europe and the U.S., all of which introduced renewed upward pressure. The market reacted quickly buyer interest rebounded, contract activity increased, and prices began recovering noticeably toward the quarter’s end.

In parallel, butter oil prices in the Indian market remained relatively stable throughout the quarter. Consistent domestic demand and favorable pricing helped India maintain a competitive position globally. While Indian whole milk powder and skimmed milk powder encountered price pressure, butter oil sustained a steady export trajectory, drawing continued international interest.

Production levels remained stable, with diverse milk variants enabling effective market coverage without triggering surplus-related concerns. In contrast to milk powders, which faced persistent demand challenges, butter oil demand showed resilience in both domestic and export markets.

Analyst Insight

According to Procurement Resource, in the near term, butter oil markets are anticipated to show regional variations in the prices. Market adjustments will depend on milk production trends and evolving allocation strategies within the dairy processing sector.
 

Butter Oil Price Trend for the Year 2024

In 2024, there was heightened volatility in Europe's butter oil market spurred by high demand, limited milk availability, and changing priorities in the dairy industry's production. In the first half of the year, prices trended higher due to tight consumer and industrial demand.

Despite adverse weather conditions across several European regions, milk supply remained stable. But processors increasingly diverted milk to more profitable products such as cheese, reducing the supply of butter oil. This tightening of supply, together with strong domestic and export demand, continued to push butter oil prices upwards.

The latter part of the year also saw continued price increases, leading to regulatory action in some markets. Strategic reserves were released in certain countries to relieve pressures domestically, and small scale producers struggled to manage high levels of input costs.

Market sentiment was also driven by tight global milk production that held below historical levels. This was worsened by disease outbreaks in dairy herds across much of Western Europe, causing additional uncertainty around production continuity. Butter oil production continued to be depressed as producers held back the good quality milk for cheese and other value-added dairy products, putting further pressure on supply of the feedstock.

Analyst Insight

According to Procurement Resource, in the near term, butter oil prices are likely to stay high as long as supply remains tight. Supply dynamics and seasonal shifts may drive moderate pricing adjustments across global markets.
 

Butter Oil Price Trend for the Second Half of 2023

Butter oil markets were observed to be closely following the feedstock butter prices during the given period of H2’23. In the Asian markets, the prices started slow in July as the downstream demands were still muted in the summer months of the third quarter. However, as the fourth quarter began, the market offtakes picked up again. A pivotal surge in raw material milk prices also pushed the butter oil price graph upwards.

The market situation was not much different in the European and American markets as the prices here too varied in a similar manner. The third quarter was more muted than the fourth quarter. Festivals and holidays were also responsible for an increased butter oil demand from the food and beverage industries. Overall, positive market sentiments were witnessed.

Analyst Insight

According to Procurement Resource, since the dairy industry is struggling with required procurements, the Butter Oil price trends are likely to continue fluctuating going forward.
 

Butter Oil Price Trend for the First Half of 2023

The price trend for butter oil closely mimics that of its feedstock butter. The prices of butter oil remained fluctuating in the first half of 2023. Prices rose in the Asian market because of the rise in consumption. The Chinese buying sentiments rose in the post-lockdown world as more people switched to processed and packaged products.

On the other hand, the European and American markets experienced stable market sentiments after a long time. Given the unprecedented highs last year, the prices stabilized in the said period as supply chains and trade normalized. The increase in product availability lowered the upstream costs, eventually leading to lower prices. Further, the price trends for butter oil declined in the later Q2’23 as the supply overtook the downstream demand.

Analyst Insight

According to the Procurement Resource, Butter Oil price trends are expected to continue exhibiting mixed price patterns, as the end user consumption and market supply seem erratic.

Procurement Resource provides latest prices of Butter Oil. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.