Butter prices in Ireland have surged over the past year, with a $0.76 increase per pound. The Irish Creamery Milk Suppliers Association (ICMSA) attributes this to rising production costs, poor weather conditions, and declining milk supply.
The price of butter in Ireland has risen sharply over the past year, with the cost of a pound increasing by $0.76, in line with a European-wide trend. The Irish Creamery Milk Suppliers Association (ICMSA), an organization representing dairy farmers across Ireland, attributes this increase to rising production costs, adverse weather conditions, and a decline in milk supply.
According to the Central Statistics Office (CSO), Ireland’s national milk collection declined by 2.3% in 2024, leading to higher prices for dairy products. Farmers have faced increased costs for energy, fertiliser, and feed, pushing them to adjust pricing to maintain profitability.
Weather and Production Challenges
Dairy production in 2024 faced setbacks due to a wet spring and early summer, which resulted in poor grazing conditions and lower silage quality for winter feed. However, an improved autumn helped stabilize production levels.
ICMSA President Denis Drennan stated that farmers are simply passing on their increased costs down the supply chain.
If our costs go up, we are perfectly entitled to adjust prices like any other industry.”
Denis Drennan, President of ICMSA
Supermarket Prices Reflect the Surge
A price comparison across major supermarket chains in Ireland shows consistency in butter prices:
- Kerrygold (1 lb): $5.36 at Tesco, SuperValu, and Dunnes Stores
- Connacht Gold (1 lb): $4.76 at Aldi
- Store-brand butter (1 lb): $4.10 at Tesco, Dunnes, and SuperValu
- Kilkeely (1 lb): $4.00 at Aldi
Interestingly, while butter prices have surged, milk prices have seen mixed trends. Tesco has reduced the price of a two-litre milk carton by $0.04, while Aldi has increased it by $0.39, bringing it to $2.67. Meanwhile, the price of a 200g block of mature cheddar cheese has increased by $0.27 in Tesco, now costing $4.09.
With dairy production costs remaining high, consumers may see further fluctuations in butter and dairy prices throughout 2025. While autumn improvements provided some relief, continued economic pressures on Irish farmers could sustain price increases.
As the dairy industry navigates challenges, Irish consumers will need to keep a close eye on their grocery budgets, with staples like butter remaining a key indicator of broader price trends in the economy.
