A move away from margarine-style spreads along with lower demand for skim milk is reportedly behind a 60 per cent price hike for butter over the past 12 months.
The move is impacting Australian manufacturers, and is creating a new market for substitutes, according to an ABC News report.
Some food companies have been struggling to source enough butter from Australia and overseas to meet the growing demand, according to the report.
A major butter shortage in Europe has also been predicted in the lead up to Christmas, with shortages not expected to ease until after the festive season.
The benefit of higher prices for dairy processors, meanwhile, have been partly being offset by lower protein prices, the ABC reported.
