Price Of Butter

[ELLHNAS]

As butter is mainly a western product I post my question here.

I just came back from a 7/11 (Bangkok area) and was shocked at the price increase of the normal butter (Thai brand). I remember not so long ago I used to buy this butter something between 40-45B (I don't remember the exact price). I am talking about the normal salted butter made in Thailand (227 grams), brand Allowrie, inside the yellowish box. Well today the same thing costed me 75B

That's an increase almost 100% and now this butter costs almost the same as the imported butter (President, Anchor etc).

At the beginning I thought the cashier made a mistake but then I checked with the price label and it read 75B. Going back home, I thought that maybe this specific 7/11 got the price wrong and I went back to a different 7/11 to check. No difference, 75B. Has anybody else experienced the same thing or is it me who has got something wrong?

[thaigerd]

You will see in the next couple of days/weeks many more prices will increase, locally produced or imported ones.

Gerd

[JacknDanny]

As butter is mainly a western product I post my question here.

I just came back from a 7/11 (Bangkok area) and was shocked at the price increase of the normal butter (Thai brand). I remember not so long ago I used to buy this butter something between 40-45B (I don't remember the exact price). I am talking about the normal salted butter made in Thailand (227 grams), brand Allowrie, inside the yellowish box. Well today the same thing costed me 75B

That's an increase almost 100% and now this butter costs almost the same as the imported butter (President, Anchor etc).

At the beginning I thought the cashier made a mistake but then I checked with the price label and it read 75B. Going back home, I thought that maybe this specific 7/11 got the price wrong and I went back to a different 7/11 to check. No difference, 75B. Has anybody else experienced the same thing or is it me who has got something wrong?

Same in all the stores.

I noticed it the other day. Imperial Brand (Thai) now 77/78 baht from 45 baht couple of months ago

[Tatler]

Butter prices have gone crazy!!! How can they put the prices up nearly 80 percent in one go?? i have seen other food products going up slowly but that is just crazy!!!

[jonniebkk]

Price of milk has gone up worldwide over the past 12-18 months...and all diary products made from milk have therefore increased. And that Allowie stuff I wouldn't even call it butter...worst tasting stuff I have ever tasted. Orchid much better and also Thai and about the same price.

[JohnBKKK]

We can thank the Chinese for that - some gouvernment boss told all chinese to drink 1 glass of milk per day - result - worldwide milk prices have shot up due to a shortage - the EU was producing too much of the good stuff and paid the farmers to stop producing milk - now there is too little -

I'd asume that Thailand imports milk powder and bulk butter for re-packaging from outside since there is no way that the little milk production here would be anywhere near sufficient to provide market demand, and that causes the enormous price hike here as well

One would think the Chinese would have enough responsibillity to give some warning in advance, like a year or two to their suppliers before anouncing to billions of little followers that they should drink the stuff which they will of course do since the polit buero has said so.... than there would have been some time to adjust production within the EU - now, all dairy products have doubled or more in price

Its not looking good out there

[junkofdavid2]

I noticed it too for Imperia and Allowrie; Orchid brand butter was still the same price last saturday in Paragon but maybe not for long.

[jbowman1993]

Its called inflation.... Currently a little over 25,000 percent in Zimbabwe, and 5.4 percent in Thailand in February.

[ELLHNAS]

Price of milk has gone up worldwide over the past 12-18 months...and all diary products made from milk have therefore increased. And that Allowie stuff I wouldn't even call it butter...worst tasting stuff I have ever tasted. Orchid much better and also Thai and about the same price.

<br />True but 7/11 does not have orchid anymore. It used to though. It is not always easy to go to Carrefour. Besides if all brands now cost around 70-80B why go for the Thai brands? Just buy the imported stuff.

As fas as inflation, a raise from 47B to 75B is way over 5.4%.

Edited March 10, 2008 by ELLHNAS

[lomatopo]

Milk prices (retail) are up ~ 20% in the last 90 days, part of a general trend of price increases here, China having nothing to do with it. Since butter is made from milk it makes sense that it too is rising. I don't buy butter so can't comment on exact prices/increases, but commercial demands (cooking/baking) for butter are increasing so with probably limited production prices will rise a bit more.

[ELLHNAS]

so how much is the imported stuff like president?

[JohnBKKK]

Milk prices (retail) are up ~ 20% in the last 90 days, part of a general trend of price increases here, China having nothing to do with it. Since butter is made from milk it makes sense that it too is rising. I don't buy butter so can't comment on exact prices/increases, but commercial demands (cooking/baking) for butter are increasing so with probably limited production prices will rise a bit more.

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I disagree that China has nothing to do with the increase in dairy prices, it is one of the main causes - its a new market to milk powder and a huge one at that. Production in the EC, US and Australia was enough to supply known markets and not much more to avoid the butter mountains etc known from the 70; and 80's - a market of the size of China has a huge influence on raw material prices as seen also in fuel costs. The price increase for dairy products is world-wide and not limited to Thailand.

Add to this the fact that a number of western Governments have in their wisdom .. or to be more precise lack thereoff decided to heavily promote the growth of bio fuel crops with substantial subsidies on offer for farmers willing to switch - result, huge price increases in grain and other crops because of shortages in the market since it has become more profitable for farmers to grow such bio fuel crops ... now they can say they did their part in possibly avoiding global warming (which does occure naturally as many scientists point out, but has become the fashion with our politicians) - trying not to mention that by actually going through with this crazy policy, they are creating a global recession and claiming inflation rate at 2 or so percent .... anyone with half a brain can easily calculate that there is a 0 missing ...

[briley]

President is about 115-120 baht

Marge is now cheaper than butter

[lomatopo]

Price of raw milk expected to fall

Friesland Foods Foremost (Thailand) expects the raw-milk price to drop and eventually return to normal next year as farmers work hard to increase supply.

Published on February 13, 2008

Some milk manufacturers are also helping farmers accelerate their output.

The firm suggested farmers under dairy cooperatives feed more protein to their cows.

The price of raw milk has grown steadily around the globe since last year, due to shortages brought on by global warming.

In Thailand, raw-milk prices have doubled from last year to Bt5,000 per tonne.

The shortage has also pushed powdered-milk prices higher, because more manufacturers have switched to using powdered milk in production.

The powdered-milk price has gradually increased from Bt12.50 per kilogram to about Bt16.

With higher output expected to ease supply woes, the cost borne by finished-milk manufacturers will be reduced, and they will not need to petition state organisations to allow retail prices to rise.

Globally, the price of raw milk is declining and thus also lowering the price of powdered milk, said marketing director Kaweemat Tangkiriphiman. But such trends will not bring down milk prices in Thailand.

However, the raw-milk price should not climb further, thus curbing pressures on the retail front.

Last year, rising costs prompted the company to petition the Commerce Ministry three times to raise the price. It also recently sent another request. Kaweemat did not reveal the exact amount requested this time.

In its business plan, Friesland plans to launch new products in its UHT group this year. It will allocate Bt100 million for its "Brand Engagement" campaign. The company's major product is UHT, which contributes 80 per cent of total sales. The rest comes from pasteurised milk.

Foremost is the market leader, with a 33-per-cent market share in Thailand's Bt6-billion UHT market. The overall milk market today is worth about Bt46 billion, representing 9-per-cent growth from a year ago, while the UHT market has grown 11 per cent.

The pasteurised-milk segment is worth Bt2.7 billion, up 17 per cent from a year ago.

Nitida Asawanipont

The Nation

[LtLOS]

Suggest you all stock up, I bought 20 Kg of salted and unsalted when the price jumped from 36 to 48, and will go today and buy another 20 kg before it hits the 75 all over.

[sweetchariot]

Absolutely nothing to do with China.

Farms across the world are switching to farming for the biodiesel market. Hence the reason Thailand have stopped exporting rice - there is a worldwide shortage.

More crop farming = less livestock.

Keynes' law of supply and demand simply states that prices will increase when supply does not overly exceed demand.

Dairy farms have been worst hit by this revolution, it is much more profitable for a dairy farmer to switch to rape, sugar cane, soya, etc than it is to produce milk. Hence cheese, butter, milk etc have rocketed in price.

Also meat has increased, but not to the same extent. Pork especially has gone up, poultry and beef to a lesser degree. Why? Because livestock farms have always been more profitable thandairy, so fewer have made the switch. If you eat bread or use flour you will also have noticed sharp increases in their prices, due to a worldwide shortage of wheat.

Although this biodiesel fad apparently creates less emissions when burnt, some boffin has calculated that when you take production into account it is actually less energy efficient than good old fashioned gasoline.

So, biodiesel faces the axe, will we see the cost of basic foodstuffs return to normal? Not a chance for the next 5 years or so when supply exceeds demand again, and Keynes' law steps in once more.

[billd766]

I went to Makro in Nakhin Sawan this morning and bought a 5 kg block of Orchid salted butter for 567 baht or 113 baht a KG.

On the 7/11 shelf it is 75 baht for 250 gram or 300 baht per kilogramme, I cut it into 20 blocks and put it in the freezer and I will use it as and when I need it.

[prakhonchai nick]

I went to Makro in Nakhin Sawan this morning and bought a 5 kg block of Orchid salted butter for 567 baht or 113 baht a KG.

On the 7/11 shelf it is 75 baht for 250 gram or 300 baht per kilogramme, I cut it into 20 blocks and put it in the freezer and I will use it as and when I need it.

I do the same. Yesterday bought a 5kg block of Orchid in Buriram Makro for 620, which is equivalent to 28bt for a 227gram pack retailing in the supermarkets for 70bt++

One point maybe someone can answer. Makro stock 2 types of Orchid butter apart from salted and unsalted. One is 620bt for 5kg, whilst there is a "Classic Orchid" currently on promotion at 510. (Thats just 23bt for a 227gram block). What is the difference?

[chobthum]

Last year I used to buy raw milk, to be later pasturized at home at 12 THB per Kg.

Now days, It had jump up to 20 THB per Kg.

If the Milk from those collecting center here in Chiangmai has raised that much, I would not be suprised with the butter price or any other dairy products.

[bigbri73]

i think all dairy products throughout the world are increasing in price, something to do with massive increases in cattle feed and oil prices.