Tuesday, 05 August 2025 10:55

DairyNZ chair defends butter prices amid global demand

Written by  Staff Reporters
DairyNZ chair Tracy Brown says she buys butter too and appreciates that double edge very well. DairyNZ chair Tracy Brown says she buys butter too and appreciates that double edge very well.

DairyNZ chair Tracy Brown has waded into the debate around soaring butter prices, pointing out that the demand for dairy overseas dictates the price to farmers and at the supermarket.

In an op-ed issued by DairyNZ, Brown says it's unique New Zealand story - when an export does well, it's good for the economy but unfortunately tough for locals.

"Cyclical food price stories are a reminder that 95% of our dairy products are exported, which means we pay international prices locally," she says.

"I buy butter too, so I can appreciate that double edge very well, as can ever dairy farmer across New Zealand. Every farmer can also appreciate the increasing cost of farming inputs, which puts pressure on our margins as well."

Butter prices have dominated news headlines with Fonterra under pressure to explain why New Zealanders have to pay exorbitant prices for butter produced locally.

Brown says while these stories come and go, they remind us of what we're good at as a country.

"We earn our living on exports - mostly food and fibre and of those, mostly dairy. $27 billion over the past year alone.


Read More:


"That's income for the Government in tax take, which gives us the public services we rely on like our schools, our hospitals, and our roads.

"We received a cheeky thank you from an MP at our Farmers Forum recently for the extra addition to their tax coffers this year as the sector delivers well for the country," she says.

New Zealand's economic recovery is being led out of the regions, by the 360,000 people working in the primary sector, of which 50,000 work in dairy, in a country of over 5 million.

Brown says that's been the case before and it will be the case again.

New Zealand dairy farmers have tackled challenges head on over the past decade, including biosecurity incursions, more extreme weather events and regulatory uncertainty.

Over the past decade too significant strides have been made on reducing environmental footprint to ensure we remain competitive among the most sustainable and low-emissions farmers on the planet.

All of this equals demand for NZ dairy on the world stage, Brown says.

"It also ensures we benefit from a growing global appetite for more natural and nutritional food and fibre that comes from responsible sources.

"I recall it wasn't that that long ago that butter was very unfashionable and deemed unhealthy, and so it follows that the swing back to more natural products has driven the increased demand and subsequent increase in price.

"While the world shouts for our butter, let's remind ourselves at home the reasons why New Zealand dairy is a world-class exemplar and so in demand:

  • We export most of what we produce - so we are exposed to world trade and must be customer focused.
  • We are primarily family businesses and farmer-owned cooperatives - and that drives values-led innovation.
  • We have a temperate climate where we grow pasture well - and that is the ultimate starting point for this story.
  • We are unsubsidised. We have to make a living at world prices competing against the best.

"Therefore, our pasture-based dairy farming system delivers highly nutritious milk, with a comparably low environmental footprint, and happy cows who graze outdoors.

"A story that has clearly spread around the world," says Brown.

More like this

Owl Farm marks 10 years as NZ’s first demonstration dairy farm

In 2015, the signing of a joint venture between St Peter's School, Cambridge, and Lincoln University saw the start of an exciting new chapter for Owl Farm as the first demonstration dairy farm in the North Island. Ten years on, the joint venture is still going strong.

Featured

$2b boost in NZ exports to EU

New Zealand’s trade with the European Union has jumped $2 billion since a free trade deal entered into force in May last year.

US tariffs hit European ag machinery markets

The climate of uncertainty and market fragmentation that currently characterises the global economy suggests that many of the European agricultural machinery manufacturers will be looking for new markets.

Tributes paid to Jim Bolger

Dignitaries from  all walks of life – the governor general,  politicians past and present, Maoridom- including the Maori Queen, church leaders, the primary sector and family and  friends packed Our Lady of Kapiti’s Catholic church in Paraparaumu on Thursday October 23 to pay tribute to former prime Minister, Jim Bolger who died last week.

National

Machinery & Products

» Latest Print Issues Online

Milking It

Fonterra vote

OPINION: Voting is underway for Fonterra’s divestment proposal, with shareholders deciding whether or not sell its consumer brands business.

Follow the police beat

OPINION: Politicians and Wellington bureaucrats should take a leaf out of the book of Canterbury District Police Commander Superintendent Tony Hill.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter