The farm gate price of milk is one of the main factors influencing the profitability of milk production. Its level depends to a large extent on market supply and demand. Since the Czech Republic’s accession to the EU, the average farm gate milk price has been significantly below average in 2009 and 2016 and reached its highest ever level in 2022. From January to October 2024, dairies in the Czech Republic bought 2.7 % more milk at a 0.6 % higher price compared to the same period in 2023. Compared to the farmgate price of milk, a more sustained increase can be seen in the cost of milk production, which reflects the rise in input prices. Inflation, which has averaged 4.2 % per year in the Czech Republic over the last 10 years, is increasing the level of costs for primary producers, processors and traders. This increases industrial producer prices and consumer prices, including butter prices. Butter production from January to October 2024 increased by 5.9 % compared to the same months of the previous year, and the price of industrial producers (dairies) saw an increase from 143 to 172 CZK per kg, i.e. + 20%.