It's all about economics
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.
Food prices rose 0.3% in August 2021 compared with the previous month, mainly influenced by higher prices for meat, poultry, and fish, Statistics New Zealand (Stats NZ) have announced.
The rises in food prices for August, while modest, mark a fifth consecutive monthly rise.
Meat, poultry and fish prices were up 1.3% in August.
This was mainly influenced by higher prices for roasting pork (up 11%), sausages (up 3.5%), lamb chops (up 5.4%) and porterhouse and sirloin steak (up 2.3%).
This was partially offset by lower prices for chicken, which were down 3.3%.
“Covid-19 restrictions had a minimal effect on price collection in August,” says Stats NZ consumer prices manager Katrina Dewbery.
Fruit and vegetable prices also increased in August, up 0.4%. This was largely due to higher prices for tomatoes (up 16%) and grapes (up 32%).
However, after adjusting for seasonal effects, fruit and vegetable prices fell by 0.2%.
“The weighted average price of both tomatoes and grapes rose sharply to $15.79 and $11.52 per kilogram, respectively,” Dewbery says.
“The prices of tomatoes previously peaked at $13.65 in August 2020, while grape prices peaked at $10.61 in November 2020,” Dewbery says.
These rises were partly offset by falling prices for broccoli (down 26%), strawberries (down 19%), capsicums (down 12%), and avocados (down 21%).
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.
Fonterra chair Peter McBride says the divestment of Mainland Group is their last significant asset sale and signals the end of structural changes.
Thirty years ago, as a young sharemilker, former Waikato farmer Snow Chubb realised he was bucking a trend when he started planting trees to provide shade for his cows, but he knew the animals would appreciate what he was doing.
Virtual fencing and herding systems supplier, Halter is welcoming a decision by the Victorian Government to allow farmers in the state to use the technology.
DairyNZ’s latest Econ Tracker update shows most farms will still finish the season in a positive position, although the gap has narrowed compared with early season expectations.
New Zealand’s national lamb crop for the 2025–26 season is estimated at 19.66 million head, a lift of one percent (or 188,000 more lambs) on last season, according to Beef + Lamb New Zealand’s (B+LNZ) latest Lamb Crop report.

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