France is the place to be if you are a food lover. The country is primarily known for its love for croissants and pastries. However, you might not want to be in France right now if you share the same cravings. The country is facing massive butter shortage which is affecting the availability of croissants (constituted mainly of butter). The supermarket butter shelves are empty, and the issue has been widely mocked online.
So What has Caused this Butter Shortage?
Back in early 2015, the EU abolished its system of milk quotas that triggered a flood of milk supplies. Consequently, it caused the collapse of milk prices that prompted the dairy farmers to cut down on their milk outputs. The shortage in French milk subsequently crippled the suppliers to fulfill their butter orders.
The Demand-Supply Side of the Problem
The global demand for butter more than doubled in a span of two years right after a research suggested that saturated fats were not as harmful as they were once thought to be. This surge in demand has led the butter prices to skyrocket. For instance, butter prices in France have almost doubled compared to previous year. Add to that the shortage in supply, then the butter crisis in France seems inevitable.
Is the Butter Crisis in France Resolving Anytime Soon?
There have been differing views on this shortage problems, with some experts saying the shortage will last until Christmas, while others disagree with the opinion. The demand for butter does not seem to be discouraged by the price hike, as consumers are more than willing to pay extra for something natural and less processed. Also, farmers, who lie at the bottom of the butter supply chain are facing biggest volatility risks, as just a year ago they were struggling with meager margins for milk production.
It’s already high time that governments and unions look into the issue of food shortage with a little more care. The procurement and supply chain management of food products should be handled with utmost care as it hits not only the consumers but also the farmers who are highly dependent on the proper supply of food products.
For more information on how a better procurement, supply chain management, strict regulations, and proper forecasting can help avoid food crisis and butter shortage: