New Zealand's Rising Dairy Prices Impact Local Consumers
Sourse: dairynews.today
In New Zealand, soaring butter prices have led to domestic supply shortages as the dairy industry prioritizes international profits.
Butter prices have surged dramatically in New Zealand, a leading dairy export nation, with local consumers facing shortages as producers focus on more lucrative overseas markets. According to Stats New Zealand, butter prices increased by 46.5% in the year to June, reaching NZ$8.60 (US$5.09) for a 500-gram block. Milk and cheese prices also rose significantly, by 14.3% and 30% respectively.
Economist Brad Olsen noted, "At the moment, I'm going with any other alternative I can find," referring to the high butter costs, and suggested that cereal without milk might be the most economical breakfast option.
International demand is driving these price hikes, with New Zealand exporting most of its dairy products. Exporters are opting to sell at higher international prices rather than domestically. Despite the local price burden, the national economy benefits significantly; an additional NZ$4.6 billion (US$2.7 billion) has flowed into the economy from higher dairy payouts. As Olsen pointed out, this financial influx is "far more substantial," even as local consumers bear the costs.
Economist Brad Olsen noted, "At the moment, I'm going with any other alternative I can find," referring to the high butter costs, and suggested that cereal without milk might be the most economical breakfast option.
International demand is driving these price hikes, with New Zealand exporting most of its dairy products. Exporters are opting to sell at higher international prices rather than domestically. Despite the local price burden, the national economy benefits significantly; an additional NZ$4.6 billion (US$2.7 billion) has flowed into the economy from higher dairy payouts. As Olsen pointed out, this financial influx is "far more substantial," even as local consumers bear the costs.
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