Butter mountain

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search
Butter being stored in 50 kg (110 lb) barrels

The Butter mountain refers to the supply surplus of butter produced in the European Economic Community due to government interventionism, beginning in the 1970s. The size of the surplus changed significantly over time, and had mostly disappeared by 2017.

History[edit]

Agricultural underproduction in the 1950s led to a series of market interventions, including the Common Agricultural Policy. Governments subsidized milk production through a guaranteed minimum intervention price for dairy products.[1] This led to a surge in the production of grain, milk, butter, and related products until production exceeded demand in the late 1970s, resulting in a glut. Milk production in Germany alone increased from 75 million tonnes in 1960 to nearly 100 million tonnes in 1979.[1] To combat the overproduction, governments introduced milk quotas, which were governed by the Common Agricultural Policy.

In the following decades, production continued to outstrip demand, and the European governments, and later, European Union would purchase tonnes of the surplus agricultural goods, creating so-called "milk lakes" and "butter" or "beef mountains".[2]

"Christmas butter"[edit]

In West Germany, between 1979 and 1985, excess butter was sold at discounted prices under the direction of the Federal Ministry for Food, Agriculture and Forests and was limited to 1 kg (2.2 lb) per household.[1] The packages were labeled as being the product of intervention stockpiles, and were specifically intended to reduce the oversupply.

Decline[edit]

In 2003, it was reported that the EU warehoused 194,000 tonnes of powdered milk and 223,000 tonnes of butter. In 2007, it was forecast that rising demand and planned reforms would eliminate the oversupply of milk and butter.[2]

By 2009, the butter mountain had returned, due to a steep decline in the price of dairy products.[3]

In 2017, it was reported that European butter stockpiles had largely disappeared due to increased demand and dwindling production, causing shortages and rising prices.[4]

See also[edit]

References[edit]

  1. ^ a b c "AGRARPOLITIK: Alles in Butter". Der Spiegel. 1979-09-10. Retrieved 2017-12-28.
  2. ^ a b Büchner, Gerold (2007-03-19). "Aus für Subventionsbiotop - Die EU korrigiert teure Fehlentwicklungen". Das Parlament. Berlin, Germany: Bundestag. Archived from the original on 2009-12-15. Retrieved 2017-12-28.
  3. ^ Castle, Stephen (2009-02-02). "EU's butter mountain is back". The New York Times. Retrieved 2017-12-28.
  4. ^ Durisin, Megan; Almeida, Isis; Anguyo, Innocent (2017-07-27). "Europe's Butter Mountain Has Melted Away". Bloomberg News. New York, NY. Retrieved 2017-12-28.