Butter Concentrates: A Solution for Rising Butter Costs

At the time of this writing (June 2024), butter prices are rallying. That seems to be a common occurrence these days. In the last two years (fall of 2022 and fall of 2023), butter has hit historical highs. It could happen again in 2024.

The food industry is used to it, but that doesn’t make it any easier to deal with. Rising butter prices pose challenges for many food manufacturers. Understanding the reasons behind these rising costs and exploring viable alternatives such as butter concentrates can help manufacturers manage costs without compromising on quality.

Why Are Butter Prices Increasing?

Where do we start? Demand. The demand for butter is strong both domestically and globally. Consumers’ preference for natural and high-quality fats has kept butter consumption high, and caused many food manufacturers to develop new products with butter instead of other oils.

Running opposite of demand is supply, which has been hampered by a host of factors:

Butter Concentrates:

A Cost-Effective Solution

Given the rising costs and supply challenges, butter concentrates offer a practical solution for commercial food manufacturers. Butter concentrates are highly concentrated forms of butter flavor created through a variety of processes, including enzymolysis, reaction flavor processes and culturing. This process results in a product that retains the rich, creamy taste of butter but in a more potent form.

Bluegrass Ingredients produces a line of butter concentrate pastes that can be used at between 1/5th and 1/20th of the usage rate of butter, depending on the intensity of the concentrate. These ingredients offer several benefits for commercial food manufacturers, particularly in managing costs, maintaining quality and improving efficiency.

Butter Concentrate Pastes

Reduce Costs

Because butter concentrate pastes are highly concentrated, a smaller amount is required to achieve the desired buttery flavor in formulas. This reduces storage costs and simplifies handling. We’ve seen upwards of $170,000 in savings on an annual purchase of 200,000 pounds of butter when our butter concentrate paste is substituted for butter.


Butter Concentrate Pastes

Improve Quality, Consistency

The concentrated nature of butter paste means the ingredient is less prone to variations in quality that can occur with fresh butter. Concentrated butter pastes also ensure the consistent delivery of a rich buttery taste that can elevate the overall sensory experience of a finished product.  Butter concentrate pastes also can be easily integrated into a wide range of formulas and production processes, and their paste format ensures even distribution throughout a product. These improvements all happen without any sacrifice in flavor or texture.

Butter Concentrate Pastes

Enhance Versatility

Our Agile Kitchen™ Team has worked with a variety of applications, from brioche rolls to frozen entrees, and have seen enhancements in the flavor and texture of products using butter paste concentrates. Applications for butter paste concentrates in food production include:


The rising cost of butter presents a significant challenge for commercial food manufacturers.  Butter concentrate pastes offer a viable solution that maintains product quality, reduces costs and improves consistency. For more insights and updates on managing ingredient costs and enhancing product quality, contact our team of experts.

Contact us today to get started!

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