August butter stocks are down 22% in the US while cheese stocks have risen by 4%. It’s perhaps no coincidence that in the first 7mths of 2022, butterfat exports have increased by more than 46% with China imports up 32%. US commentators say inflation is causing much of the distortion in the market. Manufacturers want to move stock on as soon as they can to recover cost, but consumer resistance to rapidly increasing retail prices means the exports are increasingly attractive. Cheese appears less affected by this dynamic because of increasing production capacity and the seemingly ceaseless demand for pizza for all seasons and reasons.
