Food industry experts say butter-rich treats such a biscuits, shortbread and fudge are facing a massive rise in costs as a result of the surge in butter prices.
Wholesale butter prices have rocketed by 73 per cent in the past year.
Since then biscuit makers have absorbed the cost increases, but now prices are set to rise.
Last week members of the Food and Drink Federation in Scotland held ‘crisis’ talks with biscuit makers to discuss impending price rises, according to The Grocer trade magazine.
It is feared the price rises could come in before the key biscuit buying season at Christmas.
Makers of shortbread and fudge are believed to particularly vulnerable to hikes in the price of butter.
Biscuit makers in England have also raised concerns over financial pressures resulting from the butter shortage, caused by low milk fat supplies across Europe and higher consumer demand.
People in Far East countries such as China and Japan, who traditionally shunned dairy products, are adopting more Western diets and this has increased demand for butter worldwide.
Sian Holt, of sweet treat maker Fudge Kitchen, in Kent, said butter prices started rising after the Brexit vote.
She said: “Every small producer who uses butter will have reached the point where they can no longer absorb the costs.”
Karen Crawford, of biscuit giant Elizabeth Shaw, which is based in Bristol, said: “We are very aware of fluctuations in commodity pricing.
“This is having a significant squeeze on manufacturer margins.”
David Thomson, head of the Food and Drink Federation in Scotland, said: “Some businesses are losing money to stay on the shelves.”
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