Butter prices rise in Russia. Dairy producers blame ice cream

Rising butter prices in Russia have led to increased thefts in some supermarkets and prompted Moscow to increase imports of the staple food product from nearby countries.

According to Rosstat, the state statistics agency, butter prices jumped 25.7% from January 1 to October 28. Rusprodsoyuz, a trade union of food producers, reported that a kilogram of butter now costs an average of 1,000 rubles ($10.66), a 20% increase since January.

Higher production costs combined with increased demand for ice cream and cheese, has run the price increase, according to Soyuzmoloko, the national dairy producers’ association.

“(Ice cream and cheese) are some of the reasons why the butter and cream market is experiencing tension,” Soyuzmoloko head Artyom Belov told news website Ura.ru on Friday. “The segments that consume these products have grown significantly (and) are all factors creating additional demand for cream.”

Reports on butter thefts has caused some supermarkets to lock in the product plastic containers to prevent shoplifting. Russia, which imports about 25% of its butter, primarily from Belarus, recently imported 20,000 tons from Turkey, according to Rosselkhoznadzor, the agricultural watchdog.

Deputy Prime Minister Dmitry Patrushev, who oversees agriculture, said last week that the government would closely monitor butter prices.

While butter has become the latest symbol of Russia’s Inflation Problemsit is not the fastest growing food – Rosstat reports that potato prices have increased by 56.4% since the start of 2024.

Last year, rising egg prices were of major concern to Russian consumers, prompting President Vladimir Putin to broadcast a televised apology for the rising cost of the staple.