I’m sipping my coffee and reading about ice cream prices, because, priorities. Apparently, ice cream prices are cooling off ahead of National Ice Cream Day, and I’m not surprised – who doesn’t love a good ice cream sale? According to the Bureau of Labor Statistics, the average price of a half-gallon ice cream container in the US was below $6 last month, which is a nice change from the usual summer price hike. I mean, who doesn’t love a good bargain on their favorite frozen treat?
The primary driver behind this dip in price is the cost of butter, which has come down significantly – nearly 9% year-over-year, according to the Consumer Price Index. I guess that’s what happens when you have a surplus of butter, right? Meanwhile, other ice cream ingredients like milk and sugar have had slight price increases, but it’s not enough to offset the butter price drop. I’m no economist, but it seems like a good time to buy ice cream.
Butter prices were at an all-time high in 2023, reaching $3.50 per pound, but they’ve since dropped to $1.65 per pound, which is 31% below the five-year average. That’s a pretty significant drop, if you ask me. And it’s not just butter – the dairy industry has invested over $11 billion in new manufacturing processes, which has increased the supply of butterfat, driving wholesale prices down. I guess that’s what they mean by “mooving” forward in the dairy industry.
Selective breeding and high-tech dairy production have also played a role in increasing the supply of butterfat, which is the most expensive ingredient in ice cream. Phil Plourd, the executive director at the Wisconsin Dairy Products Association, told CNN that dairy farmers are using genetics and feeding for breeding to increase the fat content in milk. I’m no expert, but it sounds like they’re doing something right. And it’s a welcome relief to manufacturers, since the FDA requires products to contain at least 10% milkfat by weight to be labeled as “ice cream.”
Higher levels of butterfat in ice cream appeal to those who are looking for a rich and satisfying treat, and it’s not just about the taste – it’s about the experience. Michael Dykes, IDFA’s president and CEO, said that innovations in the dairy industry, such as increased levels of butterfat in ice cream, enhance the flavor and make it a more indulgent treat. And who can resist a good indulgence every now and then? A recent poll by IDFA and Morning Consult found that 89% of respondents said flavor is the most important consideration when purchasing ice cream, outpacing price and container size.
Shoppers might not be thinking about the genetic advancements made in the dairy industry, but they might want to grab an extra scoop while they can. Retailers like Whole Foods and Target have promotional pricing on ice cream products throughout the summer, and data from CartHappy shows that Walmart has changed prices over 1,000 times on its Great Value half-gallon ice creams over the past two weeks. I guess that’s what they mean by “price wars.”
While prices have cooled on National Ice Cream Day, Ever.Ag expects wholesale butter prices to be a little higher for the rest of the year due to increased baking around the holidays and strong demand from foreign buyers. But for now, shoppers can enjoy the relief and indulge in their favorite frozen treats. Whether you’re grabbing a traditional half-gallon or splurging on a unique pint, the current price drop might be a little bit sweeter on your wallet this weekend. And who knows, maybe you’ll even try a new flavor – after all, as the saying goes, “you can’t buy happiness, but you can buy ice cream, and that’s kind of the same thing.” 🍦
Armchair patriot. Believes in the free market, cold beer, and that there’s always a guy named George behind every CNN segment.
Former remote-throwing champion turned #1 couch commentator on liberal panic in the media. Born in Texas (or so his mug says), he earned a degree in Fake Newsology & Beer Philosophy from YouTube University.
