Butter hits record high price

Butter prices rose 11% in August, to a record high of $5.39 a block, according to Stats NZ. The annual butter price increase was the largest in percentage terms since 2010.

The dairy product led an across the board rise in food prices which continued to outpace the general of inflation.

The average price of $5.39 for a cheapest available 500g block was up 51 cents on July and up $2.07 (62%) on August 2016.

"We have seen butter prices rising lately due to New Zealand's export driven market," consumers price index manager Matthew Haigh said. "Butter prices have experienced all-time highs in the global market, and this also drives the price here at home."

Overall Food prices increased 2.3% in the year to August 2017. This followed a 3% increase in the year to July 2017.

The smaller increase, as compared with the year to July, is due to vegetable prices coming down from recent extremely high levels.

But Vegetable prices increased 8.7% in the latest year, led by kumara and potatoes.

The price for a kilo of kumara was $8 in August 2017, up from $3.23 in August 2016.

"The exceptionally wet weather over the past year has had an impact on growing tuber vegetables such as potatoes and kumara," Haigh said. "The crop losses and extra manual work required for harvesting has translated into higher prices on supermarket shelves."

Globally dairy fat prices are on the rise - which is broadly good news for the New Zealand economy.

Demand for milk fats continued to surge and in Europe, butter shortages had led to a price spike to $US7750 ($NZ10,725) per metric tonne, well above current New Zealand prices.

Last week butter reached its second-highest level in the history of Global Dairy Trade auctions (which sets the price for NZ exporters).

 

Comments

Please tell me where I can buy butter for $5.39. The cheapest I've seen lately is $5.80.

Fonterra are running and ruining dairy in this country. Disgrace.