Guangzhou China Nov. 30, 2010 - In November 2010, the price of imported butter continues to increase, reaching USD 6,567/t, up 103.9% over the same period in 2009 and 21.38% over October 2010. The uptrend is estimated to continue in the following months.
According to Mr. Lu, sales manager of Guangdong Shantou Dairy Material Co., Ltd. (Shantou Dairy), a distributor of imported dairy materials, reveales that the main reason of the price peaks of imported butter is the shortage of imported butter.
The demand for imported butter becomes strong due to the coming peak consumption period, especially the New Year’s Day and the Spring Festival, which causes the price peaks of imported butter in November.
The price of imported butter is estimated to increase in the following months. One key factor is that government strengthens its supervision of margarine, which may boost the demand for butter, thus raising the price of imported butter.
On the other hand, some distributors reveal that their butter shipping is delayed due to the 2010 Asian Games. Some distributors prefer to import butter in January 2011, which is another factor for the price increase of their butter.
Source: CCM International