Key Facts
- U.S. butter prices rose to about $4.80 per pound in June 2025, according to the latest data cited by the St. Louis Fed, up nearly 4% from June 2024—putting prices at their highest since early 2023.
- Tighter global milk supplies and rising input costs, including labor and packaging, are key drivers of the surge, the Financial Times reported Sunday, with the UN Food and Agriculture Organization’s butter price index at an all-time high.
- The Financial Times reported that butter futures on international markets have climbed sharply in recent weeks, reflecting similar supply-demand imbalances in the EU, U.S., New Zealand, Argentina and Australia.
While the recent surge in U.S. butter prices reflects domestic inflation pressures, it’s also closely tied to developments overseas. A tightening in global milk supply—driven by poor weather conditions, herd reductions and rising production costs—has led to higher international butter prices, Bloomberg reported in July. According to the Food and Agriculture Organization of the United Nations, dairy output from major exporters like New Zealand and parts of Europe—which together comprises around 70% of the butter exported around the world—began 2025 with historically low stockpiles that caused prices to spike. Bloomberg reported that New Zealand’s butter prices rose 46.5% through June to about $5.10 per pound. Although the U.S. produces most of its own butter, international price benchmarks influence domestic wholesale and retail pricing. Increased input costs also affect the prices of butter in the U.S., Europe and New Zealand, especially ahead of high-consumption seasons.
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