A butter shortage isn’t unlikely

Data from the Agricultural Economics Research Institute (AKI)’s market report reveals that according to KSH data there were 2.892 million pigs (776,000 at individual farms and 2.116 million at economic organisations) in Hungary on 1 June 2013 – 0.7 percent less than 12 months earlier. Between January and August 2013 6 percent fewer pigs were slaughtered than a year before, but Hungary’s live pig export was 22 percent bigger than a year earlier. The production price of raw milk in Hungary reached a record HUF 103.18/kg in October 2013; raw milk’s export price was HUF 127.18/kg. According to a forecast by the European Commission, in 2013 0.2 percent more raw milk is purchased from farmer than in 2012. The EU’s cheese production grows by 1 percent and export increases by 5 percent from 2012 to 2013. Butter production in the European Union rises by 0.7 percent but the level of export falls 4 percent. This year butter’s private storage level was very low and this may result in a butter shortage. In 2014 butter stocks are expected to remain on a low level.