Lurpak butter price: why is Lurpak so expensive?
One of the biggest shocks was when the magnitude of the Lurpak price hike became apparent.
But what did the butter brand say about the price hikes – and how much more does Lurpak cost now?
How much has the price of Lurpak butter increased?
However, it was unable to absorb its cost increases, based on its selling prices.
Here’s how much 500g packs of its lightly salted spreadable butter currently cost in the UK’s ‘big four’ supermarkets:
- Tesco – £4.49 (£8.98 per kilogram) – or £4 if you have a Clubcard
- Sainsbury’s – £5 (£10 per kilogram)
- Asda – £5 (£10 per kilogram)
- Morrisons – £4.99 (£9.98 per kilogram)
Until very recently, the price for this type of bath was usually around £3.65, which means prices have gone up by 27%.
Currently the only supermarket keeping Lurpak close to its former price is Waitrose, where 500g packs cost £4 – although this is due to a £1 off offer.
These tubs now regularly cost consumers around £7 – which has sparked surprise on social media.
Why has the price of Lurpak butter increased?
Like almost all other food and beverage brands, Lurpak has been affected by food price inflation.
Explaining Lurpak’s price hikes, a spokesperson for the dairy said: “Unfortunately, our farmers face a similar situation with the prices of the feed, fertilizer and fuel they need to produce milk, which have all increased significantly in recent months.
“We understand that recent food price inflation is hitting many households very hard right now.
“While we don’t set shelf prices, we work closely with retailers to ensure our farmers receive a fair price for the milk they produce.
“Prices on the shelves have had to rise in recent months to ensure that our farmers can continue to supply the produce we all value.”
Arla has since told the BBC that he expects dairy prices to remain high as he expects the second half of 2022 to be “even tougher”.
The dairy supplier said high prices would be “sustained” as soaring production costs lead to lower global milk production.
He said fertilizer prices have increased by an average of 145%, fuel has increased by 134%, animal feed by 36% and energy by 346% compared to 2021.
The effect of higher shelf prices was felt in its revenues, which rose 17% in the first six months of the year.
However, its pre-tax profits only increased by 9%, giving it a profit margin of 3.7%.