Info

Source: Refs. 9 and 10. "Contained some triglycerides.

Source: Refs. 9 and 10. "Contained some triglycerides.

1. The U.S. Department of Agriculture (USDA) has eliminated all price supports for butter. Prices follow demand/consumption economics with the world market price (which has traditionally been significantly below the U.S. support price) operating as a base floor price. When price dips to world market price, butter becomes very price competitive to margarine/blends/spreads.

2. Health issues associated with butter have been greatly negated, for the public has become apathetic to negative cholesterol messages. In addition, the issue of trans fatty acids in fairly high concentration in margarines, and the negative health impacts of these trans fats has given butter a positive health message.

Butter manufacture continues to serve as the safety valve for the dairy industry. It absorbs surplus milk supply above market requirements for other dairy products. Milk not required by the demand for these products overflows into the creamery, is skimmed, and the cream is converted to butter. When the milk supply for other products runs short of their demand, milk normally intended for butter making is diverted into the channels where needed. Even though consumption patterns have dramatically changed over the years, the butter industry thus provides a never-failing balance wheel that takes up the slack in the relationship of supply and demand for all other dairy products.

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