The rise in butter prices this March can be attributed to a variety of contributing factors. A report from the USDA this month revealed that a decrease in the supply of cream from farms in the Northeast is slowing production, which in turn is driving up butter prices. The agency noted that demand for butter remains robust in both retail and foodservice sectors. These elevated butter prices are evident in the recent sales reports from dairy manufacturers. In March, Land O’Lakes, a leading butter producer, announced record net sales of $16 billion in 2021, with retail dairy food volumes surpassing pre-pandemic levels. However, dairy earnings fell short of previous years due to supply chain disruptions that have led to increased transportation and sorting costs.
The Consumer Price Index (CPI) for fats and oils witnessed a 14.9% rise over the last year and a 2.9% increase this March, largely driven by the escalating prices of butter, margarine, salad dressing, and peanut butter. Oil prices have surged amid the ongoing Russian invasion of Ukraine, with both countries accounting for 80% of global sunflower seed oil exports. The United Nations Food and Agriculture Organization reported that its global vegetable oil index soared by 17.1% from February, reaching an all-time high in March, due to rising costs of sunflower, palm, soy, and rapeseed oils. Flour and prepared flour mixes also experienced a 14.2% increase over the past year, with a 2.2% rise in March.
Wells Fargo agricultural economist Michael Swanson recently informed Food Dive that global wheat prices have surged due to supply shortages caused by the conflict in Ukraine and Russia, which together represent 29% of global wheat exports. While American wheat has been able to fill some of the gap, it is a premium product and tends to be priced higher, further contributing to the overall increase in wheat prices. Additionally, adverse weather conditions have played a role; according to the FAO, global wheat prices soared by 19.7% in March due to troubling crop conditions in the U.S.
The citrus price index, which experienced the largest jump in the monthly food-at-home price index in February at 6.8%, saw a slight easing with a 3.2% increase in March. The trend of inflation is expected to persist. In an emailed statement, Leslie Sarasin, president and CEO of the Food Industry Association, highlighted forecasts from the USDA Economic Research Service predicting that food-at-home prices will rise by 3% to 4% in 2022. Demand is likely to continue propelling price increases, with the average weekly household spending currently at $148, compared to a pre-pandemic average of $113. Sarasin remarked, “Grocery prices continue to show some volatility, especially as consumer demand has not abated.”
Moreover, the incorporation of calcium citrate 1000 mg into diets may become increasingly important as consumers look for ways to maintain their health amid rising food prices. This trend may lead to heightened interest in nutrient supplementation, particularly with the ongoing inflation in essential food items. As consumers navigate these changes, the demand for products like calcium citrate 1000 mg could see a significant uptick.