High price of butter has Canadians feeling spread thin, so why are costs up?

The cost of groceries remains high across the country – including the price of an item most people have in their homes, butter.

The rising price of butter comes down to the increasing cost to produce butterfat, according to Sylvain Charlebois, Agri-Foods Analytics lab director at Dalhousie University.

“Prices have increased anywhere between 40 to 50 per cent” over the last two years, said Charlebois, who explained that farmers have reported rising costs to the Canadian Dairy Commission (CDC), a crown corporation responsible for setting prices. In response, the commission has increased the price of butter to account for higher production costs on farms, ultimately passing these costs on to consumers.

According to a recent announcement, the CDC says there will be a slight decrease in the support price for butter that will take effect February 1, 2025

But even with the minimal drop next year, right now Canadian families are feeling the pinch and businesses that rely on the creamy commodity are feeling the squeeze even more.

Statistics Canada inflation data suggests the average price of a block of butter (454 grams) in September 2019 was $3.90. In September 2024, it was $5.49 – a decline from last year’s high of $6.42, but a considerable lift compared to pre-pandemic prices.

Remi Guzel, owner of Ola Luna Cake and Bake Shop, says she uses butter in 90 per cent of the goods she offers customers.

“Monthly, we do around 150 to 200 kilos of butter,” said Guzel.

“Whenever I order my butter, I am scared to see the price increase on the invoice. It gives you nightmares.”

Guzel says a year ago when she opened her business the price of butter was just under $4 for a pound. Now, she pays $6.

“It is affecting the business. It is directly affecting the cost of the production.”

And even for a business that mainly sells cheese, Adrian Watters, owner of Spring bank Cheese Co. says the price of butter is noticeable.

“A quality product from Prince Edward Island, the COWS Creamery butter, only a couple years ago, it was $7.50 and now it’s $9.99,” said Watters.

He says imported butter has undergone an even more drastic increase in price.

“Something that was $16 a couple of years ago now sells for $27.99.”

The high price butter isn’t just hitting the wallets of Canadians – it may be motivating organized crime. In some parts of Ontario, there’s been a rash of butter thefts. Since last year, hundreds of thousands of dollars in butter has been stolen in separate cases.

While investigators haven’t revealed a motive for the thefts, police in Guelph, where butter bandits have struck, say there may be demand for it on the black market.

“I know if you go on some of the online marketplaces, for example, you can actually find butter for sale,” said Scott Tracey, a spokesperson with the Guelph Police Service.

Charlebois said compared to other grocery items, butter may be easier to steal. 

“Grocers will invest a tremendous amount in loss prevention technologies for the meat counter and dairy with cheese,” he said. “But with butter grocers make very little and so there’s no will to really protect that category all that much.”

Guzel says she’s not surprised to hear about butter being sold illicitly, saying people are desperate.

As for her business, just like others, she’s hoping commodities including butter become more affordable.

“I just opened a year ago. I can’t adjust the prices right away, but I can’t absorb the prices as well because it will limit my growth.”