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NATIONAL: Cream supplies are hearty in the West and Central regions. Availability is tighter in the East, but butter makers report that in-house cream supplies are adequate for current butter production needs. Butter churning schedules are mixed. Some manufacturers are wrapping up holiday butter runs and looking ahead to 2022 Q1 butter orders. Bulk inventories are tight, with unsalted butter proving more difficult to source than salted. Export interest is strong, and domestic butter demand is steady to higher across retail and foodservice sectors.

WEST: Cream is available, some contacts report sending loads to other regions with less cream availability. Demand is seasonally strong, though some contacts believe that demand will decline in the coming weeks. Demand for butter is steady across both retail and foodservice markets. Strong international demand for butter is present, though some contacts say that export sales are being limited by increased delivery times due to port congestion. Spot butter inventories are limited, purchaser report some success in obtaining loads of salted butter though they say that unsalted butter is sold out in the region. A shortage of truck drivers continues to cause delays to deliveries of cream and production supplies. This and labor shortages have caused some butter producers to reduce production schedules in recent months.

CENTRAL: Bulk butter remains notably tight in the Central region. There is a consensus among producers that customer interest is very active. Cream is available, at least from western suppliers. However, freight costs and general limitations are daily tribulations for butter plant management. Cream, regionally, is not as available as it was last week, but cream demand is expected to trend lower next week into the final week of 2021. Butter market tones have continued to shift bullishly on tight quantities and demand health.

NORTHEAST: Strong milk sales that reroute volumes from balancing plants and a very tight cream supply are suppressing butter production in the East region. Manufacturers who normally would have transitioned to seven-day butter production schedules may have to do so later than usual. Foodservice demand has cranked up this week as some retailers make a final push for holiday butter in order to head off shelf shortages. All in all, the indications suggest freezer volumes are steadily declining.

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