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Home » BlogSpot » What does the Medical Community Favor, Butter or Margarine?
What impact has the Ukraine had on Margarine prices?


WHAT DOES THE MEDICAL COMMUNITY FAVOR, BUTTER OR MARGARINE? WHAT IMPACT HAS THE
UKRAINE HAD ON MARGARINE PRICES?

 * John Geuss
 * February 22, 2024

Margarine is built on a mixture of plant-based oils.  The most often used oils
are soybean oil and palm oil. The retail price of margarine has increased faster
in 2022 than the price of butter.  Margarine prices grew at 31 percent and
butter prices grew at 22 percent in 2022.  Comparing January 2022 to January
2023 the margarine price grew by 45 percent and butter prices grew at 26 percent
(Table I).  Sales of butter and margarine vary over time.  When partial
hydrogenation was linked to increases in trans fats, margarine sales dropped,
and butter sales picked up.  When margarine processors quit using partial
hydrogenation, margarine sales picked up. When it comes to taste, butter is the
clear winner.  When it comes to price, margarine is the clear winner (Chart I).

Table I - Percent Increase of the Price of Butter and Margarine
Chart I - Prices of Butter and Margarine

In the prior post, the pricing of butter was covered in detail.  Margarine will
be explored in this post.

PRICING

The price of butter increased to record highs based on shrinking inventories in
cold storage.  There is currently some inventory recovery and wholesale prices
are now dropping.  Margarine prices escalated due to a global shortage of
plant-based oils resulting from the huge drop in plant-based oils from the
Ukraine.  Prices of margarine are lower than butter prices and at a time of
escalating food prices with inflation, some shoppers are likely favoring
margarine.

A BRIEF HISTORY OF MARGARINE

Margarine was developed by the French initially in 1869 and further refined
during World War I and World War II.  Butter was in short supply and options
were explored.  The original versions of margarine were not plant-based but were
made from animal fats such as tallow.  Over time, margarine has been refined to
provide a product with a similar look and taste to butter and is made from
plant-based oils.  The medical and health factors have flip-flopped a few
times.  Margarine was outselling butter, but when it was discovered that partial
hydrogenation caused trans fats, which increased bad cholesterol and lowered
good cholesterol, sales dropped.  In 2015 the FDA mandated that partial
hydrogenation is not “Generally Recognized as Safe” (GRAS) and must be
eliminated by 2018.  Additionally, the amount of trans fats must be listed in
the label if above .5 grams per serving.  Margarine changed from partially
hydrogenated oil to maintain a desired melting point to blending plant-based
oils (primarily palm oil) to achieve the desired melting point.  Margarine is
now supported by the medical profession over butter primarily for heart health
reasons.

THE MEDICAL OPINION OF BUTTER AND MARGARINE

The current medical comparison of butter and margarine is consistent.  Respected
sources such as the Mayo Clinic, Web MD, Harvard Medical School, and many others
have all published papers based on research.  Their conclusions are all closely
aligned.  Butter is a saturated fat which will increase bad cholesterol and
decrease good cholesterol and can cause blockage in arteries.  The change in
2018 to eliminate partial hydrogenation have shifted the balance to favoring
margarine over butter. As mentioned above, trans fats resulting from partial
hydrogenation were deemed to be so unhealthy that they are now regulated by the
FDA and must be disclosed on the package labels.  

Stick margarine as opposed to tub margarine uses hydrogenation to make the
product firmer but it also becomes a saturated fat.  For that reason, the
medical community states that tub margarine is considered healthier than stick
margarine.  

Both butter and margarine have 80 percent fat with the other 20 percent mostly
water.  Margarine does include preservatives, color additives, and taste
enhancers, but they are not considered a health issue.  The research
organizations add that both butter and margarine are high in calories and should
by consumed in limited quantities.

PERCEPTIONS

Butter is a natural product.  The only ingredient in butter is butterfat (and
maybe some salt).  Margarine is a manufactured product with additives for color,
taste, and preservatives to increase shelf life.  The trend to natural foods has
decreased the market for margarine.  

HOW IS MARGARINE IMPACTING BUTTER SALES?

With support from the medical community, margarine sales are again growing. 
When combined with the high retail prices for butter and overall food inflation,
some consumers will change to margarine.  In grocery stores, butter and
margarine are offered next to each other, making comparisons easy.  

Butter and margarine are a small element in the overall food budget.  Many
consumers will choose to accept the higher price for a small piece of their food
purchases.  As consumption and retail sales data become available, the picture
will be clearer.


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