High Cost of Butter Hurting Baking Industry, Making Things Difficult for Families, Bakers Say

In New Zealand, the soaring price of butter is not just a concern for bakers—it's a growing challenge for families who rely on this staple ingredient for daily meals and baking. According to Statistics New Zealand, the price of a 500g block of butter has risen by 120% over the past decade, with a 46.5% increase in the year to June, reaching $8.60 per block. This dramatic rise has sparked conversations among government officials, bakers, and families alike, all of whom are feeling the impact.

Recently, Finance Minister Nicola Willis met with Fonterra CEO Miles Hurrell to discuss the rising butter prices. She emphasized the need to understand why New Zealand butter is more expensive than in Australia, raising questions about pricing behavior and potential market imbalances.

Heather Kalisch, a baking educator, highlighted the challenges this poses for families. She explained that butter is essential in many recipes, and finding suitable substitutes without compromising taste or texture is difficult. "Butter provides the moisture and the richness and the flavour in a recipe," she said. While alternatives like oil or margarine are cheaper, they often fail to deliver the same results in baked goods like cookies and scones.

For some, like Kalisch, the rising costs are a barrier to encouraging more families to bake at home. However, she noted that for certain recipes like carrot cake, using oil can be a more economical choice. Despite this, the overall trend of increasing ingredient costs continues to weigh heavily on both households and the baking industry.

Baking New Zealand President Bernie Sugrue echoed similar concerns, stating that bakers are being hit from all sides due to rising prices of not just butter, but also eggs and sugar. While some bakers are exploring alternatives, many are reluctant to alter their recipes for fear of compromising the final product's quality.

Although butter prices in Australia may be slightly lower, Sugrue noted that the differences are minimal, and the challenge remains for New Zealanders. He warned that these price increases will likely be passed on to consumers, further straining household budgets.

As the cost-of-living crisis continues to dominate public discourse, the issue of butter prices has become a focal point. With families and bakers alike feeling the pressure, the need for affordable and accessible ingredients is more urgent than ever.