Poland’s butter reserve sale won’t stabilize markets as global demand drives exports and prices.
The Polish Government Strategic Reserves Agency (RARS) has announced a tender to sell 1,000 tons of frozen butter in 25 kg blocks, with a minimum price set at 28.38 PLN/kg (excluding VAT). The move comes amidst rising global butter prices caused by a milk shortage. However, experts argue that this decision will not stabilize the domestic market.
Expert Opinions on Market Impact
Agnieszka Maliszewska, director of the Polish Chamber of Milk, believes the tender is a political decision with limited economic impact. She pointed out that Poland produces 18,000–21,000 tons of butter monthly, and the reserved butter will likely be exported for higher profits elsewhere. Despite rising global prices, butter in Poland remains relatively affordable compared to wages, with purchasing power improving since 2022.
Global Butter Trends
The global butter market is thriving, with strong demand and high prices. Factors include reduced profitability in milk production due to rising costs and consumer shifts from margarine to natural fats. These trends have led to increased demand for full-fat milk and, consequently, butter.
While the tender reflects efforts to address market concerns, experts emphasize it won’t solve the underlying supply issues, leaving Polish consumers and producers facing ongoing price pressures.