Bakers brace for costly Christmas as butter prices surge

Butter prices have rocketed in recent months, trading at record highs across Europe in bad news for bakers and pastry makers already facing high chocolate and sugar costs as they prepare for Christmas celebrations.

Strong demand for butter, tight supply and dairy processors’ preference to use more milk for the most profitable products such as cheese have driven the price surge, analysts say.

European butter was trading on world markets at a record $8,706 per metric ton by Sept. 29, up 83% on the year, the latest official data from the European Commission showed.