Butter Prices in Germany Remain High: What's Behind the Increase and What It Means for Consumers

Despite a general stabilization of inflation, butter prices in Germany remain at historic highs. As of 2025, a 250g pack of branded butter costs an average of €2.39, marking a new record.

Why Are Butter Prices Rising?

Several factors contribute to the persistently high price of butter:

Declining Milk Production: The number of dairy cows and milk farms in Germany continues to decrease, leading to a reduced supply of milk.

Lower Fat Content in Milk: Experts have observed a decline in the fat content of raw milk, reducing the amount of butter that can be produced. The exact reasons for this trend remain unclear.

Rising Production Costs: Higher costs for animal feed, energy, and transportation are driving up overall production expenses, which in turn impact the final price of butter.

Global Factors Driving Up Costs

Global events, particularly the war in Ukraine and the resulting energy crisis, have further pushed production costs upward. As early as 2022, these factors contributed to the rise in butter prices in Germany, and this trend has continued.

What’s Next for Butter Prices?

Industry experts believe that butter prices are unlikely to drop anytime soon. With limited supply, increasing production costs, and consistently high demand, German consumers will likely continue to pay premium prices for this everyday staple.