Butter buyers spread thin due to price hike

Sharp increases in dairy prices are slicing profits for businesses that use a lot of butter.

The owner of Ola Luna Cake and Bakeshop says last year, a pound of butter cost about $4, and now it's $6.

Her business uses up to 440 pounds of butter a month.

"Whenever I order my butter, I'm just scared to see the price increase. It gives you a nightmare," said Remi Guzel.

She's not the only one spread thin by the cost of dairy.

"It takes 10 litres of milk to make a kilo of cheese and up to 25 litres to make a kilo of butter. We're seeing a dramatic increase," said Adrian Watters, owner of Springbank Cheese Co. in Aspen Woods.

A food-prices expert says it's because higher production costs on farms are getting passed on to consumers.

"If you find a pound at $5, that's a pretty good deal," said Sylvain Charlebois with the Dalhousie University agri-food analytics lab.

The dairy industry has a Crown corporation controlling prices.

The latest Canadian Dairy Commission increase means dairy processors are paying a lot more to buy milk and butterfat from local farmers.

"Prices have increased by anywhere from 40 to 50 per cent," he said.

With the end product reflecting that cost, some shoppers are also debating their butter buying.

"Absolutely, the butter prices are up, so I tend to use a bit more margarine," said Bonnie Giannoulis.

It's impacting holiday plans for some people, too.

"I do a lot of Christmas baking. I'm a baker, and no, I won't be doing as much as I normally do," said Karen Stosky.

But those who can't cut back hope it doesn't take a big bite out of their business.

"I'm just hoping for the best for the bakery right now," said Guzel, who just opened the business one year ago.

The Canadian Dairy Commission has recommended a price increase of 0.02 per cent next year, so it likely won't increase butter prices very much.

The price of butter has also motivated thieves in some parts of the country.

In Ontario, hundreds of thousands of dollars in butter were stolen in separate cases, and investigators say it could be sold on the black market.

Calgary police say such a thing has not been reported here.