Butter boosts retail dairy growth

Butter sales saw the largest uplift in volume out of any dairy category
Butter sales saw the largest uplift in volume out of any dairy category

An increase in butter sales in the UK has boosted retail growth for dairy products after several weeks of decline.

Growth in the retail dairy market picked up slightly in the 12 weeks to 16 June after successive periods of decline, Kantar Worldpanel data shows.

The total value of sales of dairy products in the period rose by 1.0% year on year to £2.4 billion, in-line with wider grocery uplift.

Most dairy categories grew in value year-on-year with the exception of fromage frais.



Butter sales saw the largest uplift in volume (+4.1%) and total spend (+5.6%), despite a small increase in the average price.

Growth in the sales value of cream, cheese, yogurt and yogurt drinks was also positive, but lower than the previous 12-week period.



In related news, UK imports of butter and cheddar fell in April and May compared to the first three months of the year.

According to AHDB Dairy, it seems likely that after stock-building action taken prior to the original Brexit date, import demand has dropped off.