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Latest data shows high butter prices are now a new normal

Author
Michael Sergel,
Publish Date
Fri, 18 Jul 2025, 5:00am
Supermarkets have cited global conditions and Christmas cream demand for some high butter prices. Photo / Bay of Plenty Times
Supermarkets have cited global conditions and Christmas cream demand for some high butter prices. Photo / Bay of Plenty Times

Latest data shows high butter prices are now a new normal

Author
Michael Sergel,
Publish Date
Fri, 18 Jul 2025, 5:00am

Experts say we’ll have to get used to paying more for butter, with new figures showing prices have almost doubled in the past 14 months.

Latest data from Stats NZ shows the average 500 gram block of butter will now set you back $8.60.

That figure  — calculated based on prices in 12 cities around the country — is up from $4.49 in April last year, $2.97 in January 2015, and just $1.98 back in July 2007.

Auckland’s Costco has priced its butter lower, but some brands are priced higher and one Auckland supermarket has been selling semi-soft butter for more than twice as much.

Recent average prices have been consistently double what they were a decade ago.

That’s largely due to to a rise in wholesale prices at Global Dairy Trade auctions, which have doubled in the past five years and tripled in the past decade.

High Ground Dairy consultant Stu Davison — who provides regular analysis of global prices on Gold Sport’s Country Sport Breakfast — said the biggest factor was a long-term growth in demand from China and South-East Asia.

“Diets have been developing in Asia. The premise of including butter in a more Western diet in these Asian nations has been a big driver, especially New Zealand butter as they value the taste and they see the difference in the colour.”

Davison said Europe had also been producing consistently less butter since the start of last year, prompting many European countries to stockpile more and export less.

“You get to the situation we’re in now where butter is at extraordinary heights and everyone wants their butter on toast. We don’t see it running right back to where we were five years ago.”

Infometrics principal economist Brad Olsen, who produces an annual index of Foodstuffs supply costs, said New Zealand was impacted by those global factors because it exports so much of its product overseas.

“It’s a bit of a double-edged sword. Although clearly households are paying more at supermarkets, those higher prices internationally are also bringing forward better gains and returns for farmers domestically.”

Fonterra Chief Financial Officer Andrew Murray told The Country wholesale prices weren’t expected to fall any time soon.

“If you look at [New Zealand butter], it’s still a lot less than you’re paying in Europe, so I think that will put a floor on butter prices for a while.”

Michael Sergel is a senior reporter, usually based in Auckland. He has been covering business, politics, local government and consumer affairs for more than a decade.

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