The price of butter has increased by 60% in one year, with a 500g block now averaging $7.32, Statistics NZ says. But how does this compare to butter prices around the world?
The increase is stark, up from just under $4.50 at the start of last year and just under $5.20 four years ago.
At supermarkets this week, the cheapest butter could be found at Pak’nSave at $6.89, while at FreshChoice it went for $10.50.
Fonterra, the country’s largest dairy exporter, released its half-year profit of $729 million today and 1News asked why the price of butter remained so high in the face of these results.
Chief executive Miles Hurrell said he would not use the term “ripped off” to describe the increased price.
“You can see the international market, which is feeding the milk price, the cost of goods sold that we have to deal with, and that flows back to our farmer shareholders from a milk price perspective.”
While milk prices and profits were strong, Hurrell said it was ultimately the international market driving the price.
The global spread
New Zealand butter is still relatively affordable compared to international markets, according to recent price checks.
In the UK, for example, a 500g block of butter costs the equivalent of NZD$8.83.
In Australia, the price is only slightly lower, with the cheapest local butter priced at around NZD$7.64.
India, on the other hand, offered some of the cheapest butter prices globally. A 500g block of Amul butter was priced at just NZD$5.68, although this is at least partly due to India’s protectionist policies, which shield its domestic dairy market from international competition.
