Agrimoney.com | Butter price surge may ‘prompt fundamental market change’ – Arla

Screen Shot 2017-08-29 at 6.25.36 AMArla boss Peder Tuborgh sees a shake-up, if the rally continues which has, for the first time, made dairy fats more expensive than protein Source: Agrimoney.com | Butter price surge may ‘prompt fundamental market change’ – Arla

I haven’t been talking much about farming lately because not much has really been going on over the last month or so. But butter — good grief. The butter market has gone goofy.

Wholesale butter prices are flirting with record prices in some markets, even surpassing record levels in some areas. Retail prices have been creeping up. Demand for butter has been just about the only thing that’s been keeping farmgate fluid milk prices at a reasonably decent level over the last few months. Around here prices for generic butter is pushing close to $4/lb. while prices for the “premium” brands is in the $4.50 range, with some of the premium brands pushing $5/lb. retail prices. The exception is KwikTrip, which is selling their house brand for $2.99 in their convenience stores around here.

I’m always fascinated by how the public’s attitude towards butter and dairy fat in general has changed over the last few years. Thanks mostly to the marketing claims made by margarine manufacturers, and with little or no actual scientific studies backing those claims, butter and dairy fat was being blamed for everything from obesity, to heart disease, to stroke, to I don’t know what all else, while margarine was being pushed as a “healthy” alternative, when the opposite was true.

I always hated margarine. I hated it’s texture and flavor, I hated how it melted or didn’t melt, hated how it worked when used in cooking. But then I’m weird that way. I have one of those hypersensitive senses of smell and taste, especially smell. I’ve a bit of a reputation as being a picky eater, but I’m really not. The problem is that I smell and taste things most people seem to be unaware of.

But let’s get back to butter…

The item up there from AgriMoney reminded me of the Great Butter War going on here in Wisconsin right now. The picture of Kerry Gold butter up there isn’t just some random butter image, it’s appropriate because at the moment Kerry Gold is banned from sale in Wisconsin along with a lot of other brands of butter.

Before butter can be sold in the state, it has to be graded on taste, texture and color through some state accepted system, by state accepted inspectors. This means that if a butter maker can’t or won’t spend the time and money to put their product through the state’s inspection system because of cost or whatever reason, it can’t be sold in the state, even though it meets all other accepted federal standards.

Consumers didn’t know about this until one day Kerry Gold butter abruptly vanished from the shelves of the grocery stores here in the state not too long ago. It isn’t that the law was just passed, it’s been on the books since the 1950s. It seems that a lot of grocers just didn’t know about the law until fairly recently.

Wisconsin has a long history of laws about butter. It is still illegal for restaurants to substitute margarine for butter without the customer specifically requesting it. It is illegal to serve margarine in state prisons, schools and hospitals except for health reasons. And until the late 1950s it was illegal to sell margarine in the state that had been dyed yellow. Margarine is actually a rather sickly looking whitish color and is dyed yellow to make it look appealing. Margarine makers used to include a yellow dye packet with the margarine sold in Wisconsin so the consumer could dye it themselves.

I should point out that Wisconsin’s butter grading law has nothing to do with food safety. The grading system the state insists on is made up of largely arbitrary standards for taste, texture, smell and appearance. Kerry Gold and the other butters banned from sale in the state meet all USDA and other federal standards for quality. They just haven’t been subjected to these arbitrary tests.

Well, the whole thing is going through the legal system now, and I suspect that sooner or later the Wisconsin requirements will be overturned. But until then you’ll have to order your Kerry Gold online or hop across the border to Illinois or Minnesota to get your fix.

3 thoughts on “Agrimoney.com | Butter price surge may ‘prompt fundamental market change’ – Arla

  1. It’s stuff like that that makes people hate regulations.
    It makes me wonder if there is some standard test that can be applied to whether a regulation is of benefit. You know, like Bechdel Test for movies.
    Of course, like the Bechdel, the test itself is fairly arbitrary and can itself become a mockery of the thing it’s trying to test for.
    Still, it would be nice to have some marker to look at when you think about regulation.

    Like

    • You have a really good point there. It’s unnecessary regulations like this that cause a backlash against all types of regulations, even the ones that are really necessary for safety reasons. In this case, there is no safety issue going on, the testing, from what I understand, is concerned solely with flavor, color, texture, etc, things that nothing to do with safety in the first place. The butters that are being kept from sale here are fine, wholesome products. Absolutely nothing wrong with them. All of them pass the regular USDA tests, inspections, etc.

      Liked by 1 person

      • I imagine all the people who wholeheartedly love capitalism are the ones who support a regulation designed to defeat it’s very nature. But that’s unfair, as I have no data on that fact, just bias.

        Perhaps that is guide line. If a regulation provides for the safety of individuals or the welfare of the economy…

        Although, I suppose someone would pull that welfare of the economy out to defend the this regulation. Still, there are several financial regulations that are designed to protect against the sorts of behaviors that lead to market crashes. But don’t really zoom into individual safety.

        Maybe in the end it’s one of those “I know it when I see it” things. Which is depressing.

        Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s