The Polish government announced on Tuesday (November 17) that it will release 1,000 tons of butter from its strategic reserves to curb rising prices.
Butter prices have recently become a political controversy in Poland. A public opinion survey on Tuesday showed that over half of Poles blame the government for high butter prices.
The Government Strategic Reserves Agency (RARS) stated in a press release on Tuesday morning that “butter prices have recently soared on the world market, mainly due to a shortage of milk.”
“This situation has also affected Poland,” the agency added. “To stabilize the market, RARS has announced a tender for the sale of a large quantity of butter.” RARS is under the office of Prime Minister Donald Tusk.
The Polish government is preparing to sell approximately 1,000 tons of frozen unsalted butter, with a minimum price of 28.38 złoty per kilogram (equivalent to 6.65 euros). The first round of bidding will start on December 19, with a minimum bid quantity of 20 tons.
RARS indicated that the butter being sold comes from the government’s own reserves, which were created “to ensure the continuity of supply needed to maintain economic operations and meet citizens’ basic needs.” The sale is expected to “help stabilize butter prices.”
Currently, retail butter prices in the Polish market are far above this level. According to retail websites, the current retail price of butter at the Polish supermarket chain Biedronka ranges from 39.95 to 49.95 złoty per kilogram, depending on the brand.
Since last week, when the presidential candidate of Tusk’s Civic Platform party, Rafał Trzaskowski, mentioned butter prices in his campaign platform and blamed his opponents, butter prices have become a major topic.
Poland is set to hold elections in May 2025. The soaring prices of staple foods, including butter, have become a major focus in election campaigns.
As of November, Poland’s inflation rate is 4.7%, double the eurozone inflation rate.
A spokesperson for RARS said that large-scale butter auctions are not common, but “every few months, we have to rotate some food items” to ensure supply quality.