The Scottish government is conducting a feasibility study into easing pressures on butter prices.
The study will see if a collective buying and storing scheme is an option as well as looking at ways to tackle volatility in the butter market.
The government expect the outcome of the report in “the next month or so”.
The Scottish Agricultural Organisation Society is carrying out the study, which is funded by the £1 million Market Driven Supply Chain project established by the Scottish government in March.
The study will also look at the potential to forecast future market activity to mitigate the effects of volatility on the sector.
Scotland's Rural Economy Fergus Ewing said: “The price of wholesale butter has doubled since the start of the year, with wholesale prices at a record high.
“This is a concern for many of our smaller food and drink manufacturers who use butter as a primary ingredient, such as our shortbread and confectionary producers and bakeries, and who are finding trading tough.
“We have listened the concerns of our manufacturers and this urgent feasibility study will explore opportunities to exploit buying and efficiency savings made available through collaboration, boosting productivity and competitiveness within domestic and global markets.
“We expect to see the outcome of the study within the next month or so and we look forward to supporting the industry if whatever way we can,” Mr Ewing concluded.
