Rising butter prices give European consumers and bakers a bad taste

PARIS (AP) — Pastry chef Arnaud Delmontel rolls out dough for croissants and pains au chocolat that later emerge golden and fragrant from the oven in his Paris patisserie.

The price for the butter so essential to the pastries has shot up in recent months, by 25% since September alone, Delmontel says. But he is refusing to follow some competitors who have started making their croissants with margarine.

“It’s a distortion of what a croissant is,” Delmontel said. "A croissant is made with butter.”

One of life’s little pleasures — butter spread onto warm bread or imbuing cakes and seared meats with its flavor — has gotten more expensive across Europe in the last year. After a stretch of post-pandemic inflation that the war in Ukraine worsened, the booming cost of butter is another blow for consumers with holiday treats to bake.

Across the 27-member European Union, the price of butter rose 19% on average from October 2023 to October 2024, including by 49% in Slovakia, and 40% in Germany and the Czech Republic, according to figures provided to The Associated Press by the EU's executive arm. Reports from individual countries indicate the cost has continued to go up in the months since.

In Germany, a 250-gram (8.8-ounce) block of butter now generally costs between 2.40 and 4 euros ($2.49-$4.15), depending on the brand and quality.

The increase is the result of a global shortage of milk caused by declining production, including in the United States and New Zealand, one of the world’s largest butter exporters, according to economist Mariusz Dziwulski, a food and agricultural market analyst at PKO Bank Polski in Warsaw.

European butter typically has a higher fat content than the butter sold in the United States. It also is sold by weight in standard sizes, so food producers can’t hide price hikes by reducing package sizes, something known as " shrinkflation.”

A butter shortage in France in the 19th century led to the invention of margarine, but the French remain some of the continent's heaviest consumers of butter, using the ingredient with abandon in baked goods and sauces.

Butter is so important in Poland that the government keeps a stockpile of it in the country's strategic reserves, as it does national gas and COVID-19 vaccines. The government announced Tuesday that it was releasing some 1,000 tons of frozen butter to stabilize prices.

The price of butter rose 11.4% between early November and early December in Poland, and 49.2% over the past year to nearly 37 Polish zlotys, or $9 per kilo (2.2 pounds) for the week ending Dec. 8, according to the National Support Center for Agriculture, a government agency.

“Every month butter gets more expensive,” Danuta Osinska, a 77-year-old Polish woman, said while shopping recently at a discount grocery chain in Warsaw.

She and her husband love butter — on bread, in scrambled eggs, in creamy desserts. But they also struggle to pay for medications on their meager pensions. So the couple is eating less butter and more margarine, even though they find the taste of the substitute spread inferior.

“There is no comparison,” Osinska said. “Things are getting harder and harder.”

The cost of butter in Poland has become a political issue. With a presidential election scheduled next year, opponents of centrist Prime Minister Donald Tusk are trying to blame him and his Civic Platform party. The party's presidential candidate is seeking to blame the national bank's governor, who hails from an opposing political camp, for the inflation.

Some consumers decide where to shop based on the price of butter, which has led to price wars between grocery chains that in some cases kept prices artificially low in the past to the detriment of dairy farmers, according to Agnieszka Maliszewska, the director of the Polish Chamber of Milk.

Maliszewska thinks domestic, EU-specific and global issues explain butter inflation. She argues that the primary cause is a shortage of milk fat due to dairy farmers shutting down their enterprises across Europe because of slim profit markets and hard work.

She and others also cite higher energy costs from Russia’s war in Ukraine as impacting milk production. There is some debate about the potential effect of climate change. Maliszewska doesn't see a link.

Economist Dziwulski, however, thinks droughts may be a factor in reducing production. Falling milk prices last year also discouraged investments and pushed dairy producers in the EU to make more cheese, which offered better profitability, he said.

An outbreak of bluetongue disease, an insect-borne viral disease that is harmless to humans but can be fatal for sheep, cows and goats, may also play a role, Dziwulski said.

The U.S. saw a butter price spike in 2022, when the average price jumped 33% to $4.88 per pound over the course of the year, according to government data. Dairy farmers struggled with feed costs and hot temperatures.

U.S. butter prices fell in 2023 before rising again this year, hitting a peak of $5 per pound in September. Higher grocery prices in general weighed on U.S. voters during the presidential election in November.

Southern European countries, which rely far more heavily on olive oil, are less affected by the butter inflation — or they just don't consider it as important since they consume so much less.

Since last year the cost of butter shot up 44% on average in Italy, according to dairy market analysis firm CLAL. Italy is Europe's seventh-largest butter producer, but olive oil is the preferred fat, even for some desserts. The price of butter therefore is not causing the same alarm there as it is in butter-addicted parts of Europe.

Delmontel, the Paris pastry chef, said the rising costs put business owners like him under pressure. Along with refusing to switch out butter for margarine, he has not reduced the size of his croissants. But some other French bakers are making smaller pastries to control costs, he said.

“Or else you squeeze it out of your profit margin,” Delmontel said.

Gera reported from Warsaw, Poland. Colleen Barry in Milan, Raf Casert in Brussels and Dee-Ann Durbin in Detroit contributed.

French baker Arnaud Delmontel shows the layers of butter and dough in a butter croissants in his bakery in Paris, Monday, Dec. 16, 2024 as butter has shot up in price across Europe in recent months, adding more pain to consumers this holiday season after years of inflation in the wake of the COVID-19 pandemic and war in Ukraine.(AP Photo/Aurelien Morissard)

French baker Arnaud Delmontel bakes butter croissants in Paris, Monday, Dec. 16, 2024 as butter has shot up in price across Europe in recent months, adding more pain to consumers this holiday season after years of inflation in the wake of the COVID-19 pandemic and war in Ukraine.(AP Photo/Aurelien Morissard)

French baker Arnaud Delmontel bakes butter croissants and "pains au chocolat" in his bakery in Paris, Monday, Dec. 16, 2024 as butter has shot up in price across Europe in recent months, adding more pain to consumers this holiday season after years of inflation in the wake of the COVID-19 pandemic and war in Ukraine.(AP Photo/Aurelien Morissard)

An employee removes bread for the oven in a bakery in Paris, Monday, Dec. 16, 2024 as butter has shot up in price across Europe in recent months, adding more pain to consumers this holiday season after years of inflation in the wake of the COVID-19 pandemic and war in Ukraine.(AP Photo/Aurelien Morissard)

Butter, which has been rising fast in price in much of Europe, is displayed in a grocery store in Warsaw, Poland, Tuesday Dec. 17, 2024. (AP Photo/Czarek Sokolowski)

French baker Arnaud Delmontel talks about butter, its price and quality in his bakery in Paris, Monday, Dec. 16, 2024 as butter has shot up in price across Europe in recent months, adding more pain to consumers this holiday season after years of inflation in the wake of the COVID-19 pandemic and war in Ukraine.(AP Photo/Aurelien Morissard)

WASHINGTON (AP) — A day before a potential government shutdown, the House resoundingly rejected President-elect Donald Trump's new plan to fund operations and suspend the debt ceiling, as Democrats and dozens of Republicans refused to accommodate his sudden demands.

In a hastily convened Thursday evening vote punctuated by angry outbursts over the self-made crisis, the lawmakers failed to reach the two-thirds threshold needed for passage — but House Speaker Mike Johnson appeared determined to reassess before Friday's midnight deadline.

“We're going to regroup and we will come up with another solution, so stay tuned,” Johnson said after the vote. The cobbled-together plan didn’t even get a majority, with the bill failing 174-235.

The outcome proved a massive setback for Trump and his billionaire ally, Elon Musk, who rampaged against Johnson's bipartisan compromise, which Republicans and Democrats had reached earlier to prevent a Christmastime government shutdown.

It provides a preview of the turbulence ahead when Trump returns to the White House with Republican control of the House and Senate. During his first term, Trump led Republicans into the longest government shutdown in history during the 2018 Christmas season, and interrupted the holidays in 2020 by tanking a bipartisan COVID-relief bill and forcing a do-over.

Hours earlier Thursday, Trump announced “SUCCESS in Washington!” in coming up with the new package which would keep government running for three more months, add $100.4 billion in disaster assistance including for hurricane-hit states, and allow more borrowing through Jan. 30, 2027.

"Speaker Mike Johnson and the House have come to a very good Deal,” Trump posted.

But Republicans, who had spent 24 hours largely negotiating with themselves to cut out the extras conservatives opposed and come up with the new plan, ran into a wall of resistance from Democrats, who were in no hurry to appease demands from Trump — or Musk.

House Democratic Leader Hakeem Jeffries said Democrats were sticking with the original deal with Johnson and called the new one “laughable.”

“It's not a serious proposal,” Jeffries said as he walked to Democrats' own closed-door caucus meeting. Inside, Democrats were chanting, “Hell, no!”

All day, Johnson had been fighting to figure out how to meet Trump's almost impossible demands — and keep his own job — while federal offices are being told to prepare to shutter operations.

The new proposal whittled the 1,500-page bill to 116 pages and dropped a number of add-ons — notably the first pay raise for lawmakers in more than a decade, which could have allowed as much as a 3.8% bump. That drew particular scorn as Musk turned his social media army against the bill.

Trump said early Thursday that Johnson will “easily remain speaker” for the next Congress if he “acts decisively and tough” in coming up with a new plan to also raise the debt limit, a stunning request just before the Christmas holidays that has put the beleaguered speaker in a bind.

And if not, the president-elect warned of trouble ahead for Johnson and Republicans in Congress.

“Anybody that supports a bill that doesn’t take care of the Democrat quicksand known as the debt ceiling should be primaried and disposed of as quickly as possible,” Trump told Fox News Digital.

The tumultuous turn of events, coming as lawmakers were preparing to head home for the holidays, sparks a familiar reminder of what it's like in Trump-run Washington.

Musk and Vice President-elect JD Vance tried to blame Democrats, though rank-and-file Republicans helped sink Trump's plan.

“They’ve asked for a shutdown,” Vance said of Democrats. “That’s exactly what they’re going to get.”

For Johnson, who faces his own problems ahead of a Jan. 3 House vote to remain speaker, Trump's demands left him severely weakened, forced to abandon his word with Democrats and work into the night to broker the new approach.

Trump’s allies even floated the far-fetched idea of giving Musk the speaker’s gavel, since the speaker is not required to be a member of the Congress. Rep. Marjorie Taylor Greene, R-Ga., posted she was “open” to the idea.

Democrats were beside themselves, seeing this as a fitting coda after one of the most unproductive congressional sessions in modern times.

“Here we are once again in chaos,” said House Democratic Whip Katherine Clark, who detailed the harm a government shutdown would cause Americans. “And what for? Because Elon Musk, an unelected man, said, ‘We’re not doing this deal, and Donald Trump followed along.’”

As he left the Capitol, Senate Majority Leader Chuck Schumer said, "Now it’s time to go back to the bipartisan agreement.”

The debate in the House chamber grew heated as lawmakers blamed each other for the mess.

At one point, Rep. Marc Molinaro, who was presiding, slammed the speaker’s gavel with such force that it broke.

The stakes couldn't be higher. Trump was publicly turning on those who opposed him.

One hardline Republican, Rep. Chip Roy of Texas, drew Trump’s ire for refusing to along with the plan. Roy in turn told his own GOP colleagues they had no self-respect for piling onto the nation’s debt.

“It’s shameful!” Roy thundered, standing on the Democratic side of the aisle and pointing at his fellow Republicans.

The slimmed-down package does include federal funds to rebuild Baltimore’s collapsed Key Bridge, but dropped a separate land transfer that could have paved the way for a new Washington Commanders football stadium.

It abandons a long list of other bipartisan bills that had support as lawmakers in both parties try to wrap work for the year. It extends government funds through March 14.

Adding an increase in the debt ceiling to what had been a bipartisan package is a show-stopper for Republicans who want to slash government and routinely vote against more borrowing. Almost three dozen Republicans voted against it.

While Democrats have floated their own ideas in the past for lifting or even doing away with the debt limit caps — Sen. Elizabeth Warren had suggested as much — they appear to be in no bargaining mood to save Johnson from Trump — even before the president-elect is sworn into office.

The current debt limit expires Jan. 1, 2025, and Trump wants the problem off the table before he joins the White House.

Musk, in his new foray into politics, led the charge. The wealthiest man in the world used his social media platform X to amplify the unrest, and GOP lawmakers were besieged with phone calls to their offices telling them to oppose the plan.

Rep. Steve Womack, an Arkansas Republican and senior appropriator, said the bipartisan bill's collapse signaled what's ahead in the new year, “probably be a good trailer right now for the 119th Congress.”

The White House’s Office of Management and Budget had provided initial communication to agencies about possible shutdown planning last week, according to an official at the agency.

Johnson left the Capitol late Thursday night with only two words when asked about a path forward.

“We’ll see,” he replied.

Associated Press writers Jill Colvin, Stephen Groves, Farnoush Amiri and Matt Brown contributed to this story.

FILE—Speaker of the House Mike Johnson, R-La., joined from left by Rep. Blake Moore, R-Utah, House Majority Leader Steve Scalise, R-La., and Majority Whip Tom Emmer, R-Minn., leaves a news conference after presenting his final version of an interim pending bill to his caucus, at the Capitol in Washington, Tuesday, Dec. 17, 2024. President-elect Donald Trump has now abruptly rejected the bipartisan plan to prevent a Christmastime government shutdown. Instead, he's telling House Speaker Mike Johnson and Republicans to essentially renegotiate — days before a deadline when federal funding runs out. (AP Photo/J. Scott Applewhite, File)

Speaker of the House Mike Johnson, R-La., talks briefly to reporters just before a vote on an amended interim spending bill to prevent a government shutdown, at the Capitol in Washington, Thursday, Dec. 19, 2024. (AP Photo/J. Scott Applewhite)

Speaker of the House Mike Johnson, R-La., talks briefly to reporters just before a vote on an interim spending bill to prevent a government shutdown, at the Capitol in Washington, Thursday, Dec. 19, 2024. The vote failed to pass. (AP Photo/J. Scott Applewhite)

FILE—Speaker of the House Mike Johnson, R-La., takes questions from reporters after presenting his final version of an interim pending bill to his caucus, at the Capitol in Washington, Tuesday, Dec. 17, 2024. President-elect Donald Trump has now abruptly rejected the bipartisan plan to prevent a Christmastime government shutdown. Instead, he's telling House Speaker Mike Johnson and Republicans to essentially renegotiate — days before a deadline when federal funding runs out. (AP Photo/J. Scott Applewhite, File)

FILE—Speaker of the House Mike Johnson, R-La., left, with Majority Leader Steve Scalise, R-La., meets with reporters after presenting his final version of an interim pending bill to his caucus, at the Capitol in Washington, Tuesday, Dec. 17, 2024. President-elect Donald Trump has now abruptly rejected the bipartisan plan to prevent a Christmastime government shutdown. Instead, he's telling House Speaker Mike Johnson and Republicans to essentially renegotiate — days before a deadline when federal funding runs out. (AP Photo/J. Scott Applewhite, File)

Speaker of the House Mike Johnson, R-La., center, joined from left by House Majority Leader Steve Scalise, R-La., and Majority Whip Tom Emmer, R-Minn., talks at a news conference after presenting his final version of an interim spending bill to his caucus, at the Capitol in Washington, Tuesday, Dec. 17, 2024. President-elect Donald Trump has now abruptly rejected the bipartisan plan to prevent a Christmastime government shutdown. Instead, he's telling House Speaker Mike Johnson and Republicans to essentially renegotiate — days before a deadline when federal funding runs out. (AP Photo/J. Scott Applewhite, File)