Fat’s back! After decades of fat shaming and the relentless push towards low-fat, no-fat or even fake-fat products (remember Olean? yuk!) Americans are once again proclaiming their love of butterfat; in 2014, per capita butter consumption in the U.S. hit a 40-year high. We now each consume an average of 5.6 pounds of butter each, 25% more than we did a decade ago.

Even though California is the nation’s largest producer of milk, Golden State butter buyers aren’t immune to the record-high prices. Right now, a pound of regular, run-of-the-mill butter will set you back about $4-$7,

Want to level-up to organic? Prices are upwards of $9.50lb, while organic, raw-milk butter hits the double-digit mark at about $12 for a 16oz container.

While we could get into a great discussion about why butter has regained favor among chefs and consumers alike (maybe it’s the recent FDA push to ban the trans fats found in many artificial butter substitutes; perhaps its the fact that after years of low-fat dieting, our nation is more obese than ever…..) that’s another story altogether. The fact is, it feels like the more butter we eat, the higher the prices go – what gives?

You Can (Partially) Blame The Offshore Buyers

Back in 2000, virtually all the butter produced in the United States was sold domestically. A lot has changed since then – US dairy producers are now exporting approximately 10% of their butter to far-off countries like Morocco, Egypt and Saudi Arabia.

New Zealand, the world’s biggest butter exporter, had a severe drought a few years back – American farmers seized the opportunity, and the rest is history. In the first quarter of 2014, exports of U.S. butter were up a whooping 113% over the previous year, when we shipped 91,000 tonnes overseas.

Those record exports put a big dent in our domestic butter inventories – yes, this really is a thing. Producers usually make more butter in the late fall in preparation for the traditional spike in demand during our holiday season. Exporters have been dipping into those ‘butter reserves’ to fill overseas orders, causing our domestic prices to rise.

Of course, the worldwide demand for American butter is only partially to blame for the price jump – the fact is, we’re eating more of it, and so far, we’ve been willing to pay a premium for it.

So What’s A Butter Fan To Do?

If the market trends are accurate, there might be some relief in sight. According to the Daily Dairy Report, the price per pound of butter dropped slightly between October 3 and October 10, and while projections call for moderate fluctuations, it looks future prices might be leveling out.

So don’t stop churning out your favorite butter-filled dishes just yet – after all, American’s are having a love affair with butter, and so far, they’re willing to pay a premium for all that delicious dairy goodness!