Wednesday, 23 July 2025 11:25

It's all about economics

Written by Milking It

font size decrease font size increase font size
Print
Email

OPINION: According to media reports, the eye-watering price of butter has prompted Finance Minister Nicola Willis to ask for a 'please explain' from her former employer Fonterra.

Dairy is the country's largest export industry; but recent figured from Stats NZ show domestic butter prices have surged 65% and some people are struggling.

Surely, Willis will understand that global supply problems and high demand for New Zealand's products are driving local prices higher.

About 95% of New Zealand's dairy products are exported, which means the international market determines domestic prices.

It is a double-edged sword, where high prices are good for the country's economy but tough for domestic shoppers.

More like this

Fonterra expands butter production at Clandeboye with $75m investment

Fonterra is boosting its butter production capacity to meet growing demand.

Open Country opens butter plant

When American retail giant Cosco came to audit Open Country Dairy’s new butter plant at the Waharoa site and give the green light to supply their American stores, they allowed themselves a week for the exercise.

NZ seeks certainty on US tariff, says McClay

Trade Minister Todd McClay says his officials plan to meet their US counterparts every month from now on to better understand how the 15% tariff issue there will play out, and try and get some certainty there for our exporters about the future.

Wasted energy

OPINION: Finance Minister Nicola Willis could have saved her staff and MBIE time and effort over ‘buttergate’ recently by not playing politics with butter prices in the first place.

Cynical politics

OPINION: There is zero chance that someone who joined Fonterra as a lobbyist, then served as a general manager of Fonterra's nutrient management programme, and sat on the board of Export NZ, a division of lobbyist group Business New Zealand, doesn't understand that local butter (and milk and cheese) prices are set by the international commodity price.

Featured

DairyNZ Celebrates Women Leaders on International Women’s Day

DairyNZ Chair Tracy Brown has seen a lot of change since she first started out in the dairy sector, with around one-third of dairy farmers now women.

Castle Ridge Station Wins Canterbury Supreme Environmental Award

Castle Ridge Station has been named the Regional Supreme Winner at the Canterbury Ballance Farm Environment Awards.

Lincoln Student Awarded Dairy Scholarship

The South Island Dairy Event has announced Jessica Findlay as the recipient of the BrightSIDE Scholarship Programme, recognising her commitment to furthering her education and future career in the New Zealand dairy industry.

NZ and Chile Sign New Agricultural Cooperation Deal

New Zealand and Chile have signed a new arrangement designed to boost agricultural cooperation and drive sector success.

DairyNZ Tests Heat Stress Solutions for Dairy Herds

New DairyNZ research will help farmers mitigate the impacts of heat stress on herds in high-risk regions of the country.

Bridge Pā Table Grape Harvest Starts Weeks Early

Budou are being picked now in Bridge Pā, the most intense and exciting time of the year for the Greencollar team – and the harvest of the finest eating grapes is weeks earlier than expected.