Lang
Butter prices in New Zealand jumped 65% this year through March, according to Statistics New Zealand data cited by The Guardian.
Although the dairy industry is the country's largest export sector, the latest figures showed the average price of a local 500g block of butter rose to NZ$7.42 (US$4.50), an increase of nearly NZ$3 (US$1.82) compared with the same period last year.
Because of this sharp rise, New Zealanders have started driving for hours in search of cheaper butter, ordering it from Australia, or even making it at home, according to a report published on 7 June.
Queues have been spotted at a Costco store in Auckland for cheaper bulk blocks of butter, prompting the store to cap purchases at 30 blocks per shopper.
Some residents have turned to social media to teach others how to make butter at home, while bakeries across the country have reported having to raise prices or risk closing down, the report said.
Loella Benial, owner of Kaye's Bakery in the Southland region, said she felt frustrated at having to import cheaper alternatives despite living in a country that produces vast quantities of dairy.
New Zealand is the world's largest dairy exporter, producing a third of global dairy trade. The sector is valued at about NZ$11.3 billion (US$6.86 billion), equivalent to 3.2% of GDP, and plays a significant role in the domestic economy.
Brad Olsen, chief executive of Infometrics, said global supply issues and strong demand for New Zealand products are pushing up domestic prices.
With about 95% of New Zealand's dairy production exported, it is the global market that sets domestic prices, according to The Guardian.
Olsen described the situation as a "double-edged sword," noting that while high prices benefit the economy, they place a burden on local consumers.
Source: The Guardian