# Butter prices skyrocket 40% on labor, supply woes: USDA | Food Dive

> The average price of grade AA butter reached $2.02 per pound for the week ending December 11, 2021, up 40% year over year, and the USDA weekly average rose to $2.66 for the week ending January 7. Declining cow herds, labor shortages and higher packaging costs are constraining butter supply.

- Date: 2022-01-10 · published 2022-01-10T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/43141-butter-prices-skyrocket-40-on-labor-supply-woes-usda-food-dive
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Limited butter supply and rising prices reflect tight dairy fundamentals, supporting milk values and signalling continued strength in dairy-derived commodities.

## Read by commodity

- MILK: bullish ▲

## Sources

- fooddive.com: https://www.fooddive.com/news/butter-prices-skyrocket-40-on-labor-supply-woes-usda/616902/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.