Rising butter prices and Fonterra

The story so far

Butter prices in New Zealand have risen sharply, and international demand has been cited as a key driver.^{29 May 2025; 18 Jun 2025} Stats NZ reported that food prices rose 4.6 percent in the year to June, with butter a major contributor, and a 500g block rose 46.5 percent in the year ended May.^{17, 24 Jul 2025} Fonterra reported an 11 per cent profit rise to $1.08 billion for the nine months to April, and its chief executive said the co-operative must reflect market trends to return value to farmer owners.^{29 May 2025} Costco shoppers queued for discounted butter, which sold out in under half an hour despite a 30-block limit, and a Southland bakery began sourcing cheaper butter from overseas.^{21, 23 May 2025} Finance Minister Nicola Willis met Fonterra chief executive Miles Hurrell, who ruled out two-tier pricing and attributed prices to supermarkets and international rates, while Willis said New Zealanders are not getting a "raw deal".^{22, 23, 24 Jul 2025}

Latest

Consumer frustration over butter prices has become a subject of political debate, and Professor Alan Renwick is analysing possible solutions.^{25 Jul 2025} Federated Farmers' dairy group chair Karl Dean hopes retail butter prices will fall once the cost of milk solids drops.^{25 Jul 2025}

Key moments

1. 21 May 2025Southland bakery turns to overseas butter via Australian brokers.
2. 23 May 2025Costco butter sells out in under half an hour despite purchase limit.
3. 29 May 2025Fonterra reports 11 per cent profit rise to $1.08 billion.
4. 17 Jul 2025Stats NZ reports food prices up 4.6 percent; butter up sharply.
5. 22 Jul 2025Finance Minister to meet Fonterra chief over butter price gap with Australia.
6. 24 Jul 2025Fonterra chief rules out two-tier pricing for domestic customers.
7. 25 Jul 2025Butter frustration becomes political debate; solutions being analysed.

Written from the stories below; each sentence links to its sources.