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Poland acts to curb butter price hikes before Christmas

Poland acts to curb speculation in butter, soften price hikes before Christmas

19:02, 18.12.2024
  fb/pk;
Poland acts to curb speculation in butter, soften price hikes before Christmas Poland’s move to sell off 1,000 tons of frozen butter from its national reserves aims to combat further price hikes and speculation ahead of the Christmas holidays, Prime Minister Donald Tusk said on Wednesday.

Poland’s move to sell off 1,000 tons of frozen butter from its national reserves aims to combat further price hikes and speculation ahead of the Christmas holidays, Prime Minister Donald Tusk said on Wednesday.

The country plans to sell off 1,000 tons of butter from its national reserves. Photo: PAP/Petr Svancara
The country plans to sell off 1,000 tons of butter from its national reserves. Photo: PAP/Petr Svancara

Podziel się:   Więcej

Global butter prices have risen for the 14th consecutive month, hitting an all-time high driven by strong domestic and international demand alongside limited supplies, especially in Western Europe, according to the UN Food and Agriculture Organization.

On Tuesday, the Polish Prime Minister’s Office announced that the Government Agency for Strategic Reserves was planning to sell 1,000 tons of frozen butter in 25-kilogram blocks from its stocks.

Speaking after a Cabinet meeting the next day, Tusk said that the move was expected to benefit both consumers and the national reserves agency itself.

“This is a win-win intervention. The Government Agency for Strategic Reserves will not incur losses, and butter prices are currently very high,” he said.

Tusk pointed out that although butter in Poland remains among the cheapest in Europe, it is still expensive for low-income households.

He added: “No one can guarantee that butter prices will fall noticeably, although this is quite a massive intervention.

“We have reasonable hope and expectation that this will hinder the actions of potential speculators".

In addition to butter, Poland's strategic food reserves include cereals and grain products, meat, vegetable and animal fats, dairy items and other essentials such as mineral water and sugar.