Finance Minister Nicola Willis told Ryan Bridge that she meets with Fonterra regularly and will ask the dairy co-operative about its pricing model during their next meeting.
Finance Minister Nicola Willis is set to query the high cost of butter with New Zealand-based global dairy co-operative Fonterra today.
Speaking to Ryan Bridge on Herald NOW this morning, Willis confirmed she would be meeting with Fonterra chief executive Miles Hurrell tonight.
Willis explained that the meeting “won’t just be about butter” but the high price paid by New Zealanders for the dairy product is on the agenda.
“I will be asking about their retail pricing model, how they’re seeing the supermarket’s margins, how they’re seeing their own margins, understanding what’s getting through to the consumer and whether there’s anything we can do there.”
The price of butter has almost doubled in the past 14 months. Photo / Greg Bowker
In May, Fonterra posted a $1.158 billion Q3 profit and pitched its farmgate milk price forecast for the 2025/26 season in a range of $8.00-$11.00 per kg of milk solids.
Inflation figures released yesterday show the consumer price index (CPI) increased 2.7% in the 12 months to the June 2025 quarter. That means the official inflation rate is at its highest point in the last year.
Other recent figures show the price of butter has almost doubled in the past 14 months. Latest data from Stats NZ shows the average 500g block of butter will now set you back $8.60. That figure, based on prices in 12 cities around the country, is up from $4.49 in April last year, $2.97 in January 2015 and $1.98 in July 2007.
Food prices increased 4.4% in the 12 months to May 2025, following a 3.7% increase in the 12 months to April 2025, according to figures released by Stats NZ.
“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.”
