# US butter market shifting from abundance to scarcity | Dairy Processing

> The US butter market is moving from abundance to scarcity as dairy herd numbers fell by about 85,000 head between May and September. Reduced milk output is cutting butter production and drawing down inventories, pushing prices higher.

- Date: 2021-12-22 · published 2021-12-22T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/43597-us-butter-market-shifting-from-abundance-to-scarcity-dairy-processing
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Lower herd size and shrinking butter stocks support higher dairy prices into 2022, which tightens milk-based byproduct supply for feed buyers.

## Read by commodity

- MILK: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2019-04-30 | [Farmers are expected to be cautious with improving dairy prices - Brownfield Ag News](https://feedsoft.ai/events/59728-farmers-are-expected-to-be-cautious-with-improving-dairy-prices-brownfield-ag.md) | +3.3% | +2.6% |
| MILK | 2020-07-21 | [2020 dairy outlook update: COVID-19 consumption shifts upends profitability \| FCC](https://feedsoft.ai/events/52123-2020-dairy-outlook-update-covid-19-consumption-shifts-upends-profitability-fcc.md) | +0.4% | -18.4% |
| MILK | 2021-11-19 | [US Dairy Prices Jump As Milk Production Growth Slows - EDairy News English](https://feedsoft.ai/events/44199-us-dairy-prices-jump-as-milk-production-growth-slows-edairy-news-english.md) | +0.6% | +3.1% |
| MILK | 2017-01-23 | [Economist expects dairy prices to improve - Brownfield Ag News](https://feedsoft.ai/events/73111-economist-expects-dairy-prices-to-improve-brownfield-ag-news.md) | -0.1% | +0.7% |
| MILK | 2022-03-11 | [2022 economic state of the U.S. dairy industry - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/42283-2022-economic-state-of-the-u-s-dairy-industry-progressive-dairy-ag-proud.md) | -0.1% | +7.6% |

## Sources

- dairyprocessing.com: https://www.dairyprocessing.com/articles/576-us-butter-market-shifting-from-abundance-to-scarcity

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