In a landmark achievement, Türkiye’s butter production soared to an all-time high in 2024, presenting a potential solution to Europe’s ongoing butter shortages. However, existing export restrictions have prevented the country from fully capitalizing on this opportunity, said Harun Calli, president of the Turkish Packaged Milk and Dairy Products Industrialists Association (ASUD).
Europe’s Persistent Butter Supply Issues
The chart shows butter price inflation in Europe for December 2024, with Czechia and Germany experiencing the highest increases, while France and Malta saw minimal changes. EU average: ~20%. (Chart via facebook.com/EurostatStatistics)
European consumers have been grappling with significant price hikes in butter due to constrained supply chains and escalating production costs. According to Eurostat, the average butter price in Europe surged by 21.3% year-over-year in December 2024, with Czechia and Germany experiencing the steepest inflation, while France and Malta saw relatively moderate increases.
This supply-demand imbalance has made European markets increasingly dependent on external sources. Yet, despite its booming production, Türkiye remains unable to fully meet this demand due to stringent export limitations.
Türkiye’s Export Restrictions: A Missed Opportunity?
Currently, Türkiye enforces restrictions on butter exports, allowing only packaged products of 1 kilogram or less to be sold internationally. Calli emphasized that if these constraints were eased, Türkiye could emerge as a crucial supplier for Europe’s butter market.
“For exports to Europe, milk must be sourced from approved farms, and at present, 41 facilities in Türkiye are equipped to meet these regulatory requirements,” Calli noted.
“If we have a surplus in butter production, lifting export restrictions would not only benefit our dairy industry but also provide stability to the European market.”
A Strong Case for Expanding Dairy Exports
Beyond butter, Calli highlighted the importance of promoting high-value dairy products, particularly cheese, as a strategic move for Türkiye’s dairy sector.
“Encouraging the export of premium dairy products can enhance our industry’s global competitiveness, ensuring long-term sustainability for our producers,” he said.
Record-Breaking Production Amid a Changing Market
According to the Turkish Statistical Institute (TurkStat), Türkiye’s butter production skyrocketed by 15.2% in 2024, reaching a historic high of 100,321 metric tons (110,584 tonnes). This unprecedented growth underscores the country’s capacity to contribute more significantly to global dairy markets—if the right policies are implemented.
Looking Ahead: Policy Shifts Could Unlock New Trade Avenues
With Europe facing continued butter supply constraints, a revision of Türkiye’s export policies could create a mutually beneficial trade environment. The potential to meet rising demand while boosting Türkiye’s dairy sector could reshape regional trade dynamics in the coming years.
The question remains: Will policymakers recognize the opportunity and adjust restrictions accordingly? The answer could define Türkiye’s role in the international dairy landscape for years to come.
