A butter shortage in the United States is leading to increased prices as the holiday season begins. According to the Wall Street Journal, limited milk production and staffing issues have resulted in the lowest inventory of butter since 2017.
The United States Department of Agriculture said that the amount of butter in storage facilities fell by 10% in August and is down 22% over the last year.
The issues have caused the price of butter to skyrocket by nearly 25% over the past year.
The high prices come as demand for butter is spiking as Americans begin preparations for the busy holiday cooking season.
The butter shortage could impact the prices of other dairy items, such as cheese. According to Fox Business, a report compiled by Tanner Ehmke, lead economist for dairy and specialty crops at CoBank, said that "historically high butter prices are all but certain to continue for the remainder of 2022."
In addition, Ehmke warned that cheese prices could also spike as manufacturers pull back due to higher milk prices.
"Competition for scarce milk will put cheese makers at a disadvantage to butter manufacturers that are better positioned to pay higher prices for milk," Ehmke said.