According to data from the United States Department of Agriculture (USDA), the amount of butter sitting in U.S. storage facilities in August fell 10 percent month-over-month. However, it was down 22 percent compared to the same time a year ago.
The Agriculture Marketing Service’s recent Dairy Market News report shows supplies are tight around the nation. In the report, officials say demand is outpacing supplies in the West, where producers run reduced production schedules.
As supplies dwindle, butter prices have surged, outpacing all other food on the Consumer Price Index. in August, Costs for groceries rose 13.5 percent. However, butter prices rose 24.6 percent, according to the Bureau of Labor Statistics.
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