Worst of the butter bubble may be over
The current price of butter is unsustainable but the worst may be behind us, LacPatrick boss Gabriel D'Arcy has said.
The price has soared following a global increase in the demand for dairy fats.
"Butter future prices are beginning to relax. I hope it doesn't collapse. I don't expect that it will, but it is not sustainable at current levels," warned Mr D'Arcy, who said the long-term average price of butter is about €3,500 per tonne.
"We're hearing reports that the retail price of butter has gone up in Germany, 15pc or 20pc, and consumption has reduced. What's happening is that people can't afford to buy butter and use butter as an ingredient and as a consumer at these prices."
But he said demand is now being curtailed.
Meanwhile, Mr D'Arcy revealed that LacPatrick had transferred production of its Monaghan Champion butter brand to Ballyrashane in Co Derry.
"We have done that to accommodate a significant increase in pack of butter production on the Monaghan site," he said.
He stressed that there was no threat to the Monaghan site, insisting: "Employment has gone up. We're investing this year about half a million (euro) on the Monaghan site."