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How bakery producers can save money with high butter prices

30 Sep 2024

Article
Mimetic
Bakery

Butter prices have soared to unprecedented levels, causing concern among bakery producers and artisanal bakers worldwide. As butter is a key ingredient in many baked goods, it’s important to understand why prices are rising and to explore cost-friendly, sustainable alternatives for butter. This helps bakery businesses to manage the challenges they’re facing today.

What’s behind the rise in butter prices?

Several factors have contributed to the historic rise in butter prices:

  1. Declining long-term milk production: Butter is directly tied to milk production.
    According to Rabobank’s May 2024 research report, the Northwestern European milk production will decrease gradually. Researchers “estimate volumes will shrink by about 1.2% annually from 2023 to 2035 to 50 million metric tons, down 13% over the period, nearly erasing all milk volume growth since 2010 and indicating the need for a transition across the value chain.” 
  2. Seasonal milk supply shortage: Currently, milk availability in the European Union is lower than expected. This is partially due to the natural seasonality of dairy production. 
  3. Bluetongue disease impact: The outbreak of bluetongue disease has further reduced dairy production, disrupting the supply chain and affecting the availability of milk fat, which is essential for butter. 
  4. Weather-related issues: Recent wet weather conditions have impacted the quality of feed, lowering the fat content in milk. This has resulted in decreased butter production.

But the consumer’s demand for butter remains high, putting additional strain on supply and driving prices up. While some predict that higher butter prices will reduce consumption, the full impact on the market is yet to be seen. Bakery producers, especially those who rely heavily on butter, are now faced with the challenge of maintaining profitability without sacrificing product quality.

Finding a cost-effective solution with plant-based alternatives

For bakery industry players struggling with rising butter costs, switching to alternative ingredients can make a big difference. One great option is Mimetic, a plant-based butter substitute created by Puratos. It offers bakery professionals an affordable way to control costs while still delivering high-quality products.

Why Mimetic can help bakery businesses reduce butter costs:

  1. High quality: Mimetic delivers great results across a range of baked goods, from croissants and pastries to brioches - whether you're baking small batches or on a large scale. It gives your products the same crispiness, flakiness, and fresh taste as butter, ensuring your customers get the quality they love. Plus, Mimetic offers a clean-label option with no additives so that bakery businesses can meet the growing demand for natural ingredients. 
  2. Cost-efficiency: Perhaps the biggest advantage of Mimetic is its cost-effectiveness. Unlike butter, which is subject to market fluctuations and shortages, Mimetic offers price stability. This helps bakery producers control costs without compromising on quality. 
  3. Lower environmental footprint: As a plant-based specialty fat, Mimetic has 3 times lower environmental impact compared to traditional butter. This is measured using the EU-recommended PEF (Product Environmental Footprint) method as part of a complete life-cycle assessment. It makes it a more sustainable choice for businesses aiming to reduce their carbon footprint. 
  4. Responsible sourcing: Mimetic products are made with 100% Roundtable on Sustainable Palm Oil (RSPO), which means it’s certified, ensuring sustainable sourcing.

Navigating uncertain times with innovative solutions

The unpredictable rise in butter prices shows how important it is for bakeries and baked goods manufacturers to stay flexible and adapt to changes. While it’s difficult to predict how long these high prices will persist, taking proactive steps to explore alternatives like Mimetic can provide much-needed relief for bakery businesses.

Companies can continue to deliver delicious, high-quality products to their customers while keeping costs under control. As the industry continues to evolve, staying informed and embracing new approaches will be key to thriving in the face of uncertainty.

If you'd like to learn more about how Mimetic can help your business handle rising butter prices, we are glad to help you at Puratos.