logo
Southland bakery shops overseas as NZ butter price rockets

Southland bakery shops overseas as NZ butter price rockets

NZ Herald21-05-2025

If the bakery is making large quantities of butter shortbread to order, that increases the requirements.
She said buying butter directly from New Zealand dairy companies was too expensive, despite Southland being one of the country's biggest dairy-producing regions.
Kaye's instead uses an Australian broker to buy all its butter wholesale, which Penniall described as 'crazy'.
'I work with a company out of Australia,' she said.
'It seems crazy, but it's too hard to buy off New Zealand butter companies. You need to be buying more than 10 tonnes to get a reasonable price.
'I'll get supplied either Australian or New Zealand butter, but out of an Australian broker.'
Penniall preferred to support New Zealand farmers, but said she used Australian butter when it cost less.
'There's no difference in New Zealand and Australian butter from a manufacturing perspective. The texture, the taste, the performance, it's all good.'
In a quest to lower its ingredient costs, Kaye's recently put butter from the United States on the table in a trial.
'We were offered butter out of America,' Penniall said.
'We checked the specs, and it was really a lot cheaper, like $3 a kilo.
'But it turned out the water content was actually a lot higher, which would have been a disaster for us in manufacturing.'
She would not use margarine because customers bought Kaye's biscuits for their buttery quality.
The company was now grappling with price rises for all its key ingredients, and that cost would have to be passed on soon, she said.
'We do struggle with the cost of butter.
'Go back to 2022, only three years ago, we were paying around $11 per kilo, and now we're paying $14, if not $15 a kilo.
'We do thousands and thousands of butter shortbreads for our brand and for other brands, and it makes it expensive because the customer wants the quality.'
She doesn't see the cost of butter coming down soon.
'I think it's the new way of that particular dairy product.'
At this week's Global Dairy Trade Auction, the price of butter fell 1.5%, to US$7821/MT, after hitting a record high of US$7992/MT at the previous auction earlier this month.
The strength of world prices means dairy farmers are poised to receive record payouts of at least $10 a kilo of milksolids.
Stats NZ data shows butter prices have increased significantly over the past year, with prices up more than 65% in the 12 months to April.
- RNZ

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Call For CNMI Leaders To Fight Back On High Airfares
Call For CNMI Leaders To Fight Back On High Airfares

Scoop

time4 hours ago

  • Scoop

Call For CNMI Leaders To Fight Back On High Airfares

Article – RNZ The former representative shared his frustration after attempting to book a four-day roundtrip ticket from Guam to Saipan. Mark Rabago, RNZ Pacific Commonwealth of the Northern Marianas correspondent Former Northern Mariana Islands lawmaker Edwin K. Propst taken to social media to urge leaders to 'go to war' with United Airlines over what he claims are exorbitant airfares between Saipan and Guam. The call to action comes amid renewed efforts to reinstate the Essential Air Service program in the CNMI and push for a cabotage exemption. 'Attention all leaders of the Marianas in the public and private sector, it is time to go to war with this airline,' Propst wrote. The former representative, who now works at the CNMI broadband policy and development office, shared his frustration after attempting to book a four-day roundtrip ticket from Guam to Saipan in June – to find the lowest available fare was US$767. 'For a 25-minute flight?! 'They have just made record-breaking profits and instead of rewarding their customers, they increase their prices.' Propst called the airfares 'devastating' to the local economy and tourism. The CNMI is currently seeking exemption from federal cabotage restrictions, which bar foreign airlines from operating domestic routes between US territories such as Guam and the CNMI. Governor Arnold Palacios mentioned this effort during his State of the Commonwealth Address, saying he had 'actively advocated for potential cabotage waiver [and] essential air services' in recent talks with federal agencies and congressional leaders. Palacios emphasized the importance of improved regional connectivity to support the CNMI's tourism-dependent economy. Senate public utilities, transportation and communications committee chair, Senator Jude Hofschneider called Propst's complaints a 'sad reality of economic times,' adding that United's pricing is 'likely a business decision by the air carrier'. Still, Hofschneider said the moment calls for greater support of Congresswoman Kimberlyn King-Hinds' bill introduced in April to requalify CNMI airports for the Essential Air Service (EAS) program. If passed, the measure would allow federal subsidies to fund daily round-trip flights even if commercial carriers withdraw service. A quote from CWM Travel International showed a Saipan-Guam roundtrip departing 8 June 8 and returning 12 June costing $420 – significantly cheaper than Propst's booking but still high for an inter-island flight. The EAS program, created in 1978 and stripped from CNMI eligibility in 2012, was intended to preserve air access for small US communities. King-Hinds' bill seeks to restore eligibility to Saipan, Tinian, and Rota by placing CNMI alongside Alaska, Hawaii, and Puerto Rico in exemption status.

Call For CNMI Leaders To Fight Back On High Airfares
Call For CNMI Leaders To Fight Back On High Airfares

Scoop

time5 hours ago

  • Scoop

Call For CNMI Leaders To Fight Back On High Airfares

The former representative shared his frustration after attempting to book a four-day roundtrip ticket from Guam to Saipan., RNZ Pacific Commonwealth of the Northern Marianas correspondent Former Northern Mariana Islands lawmaker Edwin K. Propst taken to social media to urge leaders to 'go to war' with United Airlines over what he claims are exorbitant airfares between Saipan and Guam. The call to action comes amid renewed efforts to reinstate the Essential Air Service program in the CNMI and push for a cabotage exemption. 'Attention all leaders of the Marianas in the public and private sector, it is time to go to war with this airline,' Propst wrote. The former representative, who now works at the CNMI broadband policy and development office, shared his frustration after attempting to book a four-day roundtrip ticket from Guam to Saipan in June – to find the lowest available fare was US$767. 'For a 25-minute flight?! 'They have just made record-breaking profits and instead of rewarding their customers, they increase their prices.' Propst called the airfares 'devastating' to the local economy and tourism. The CNMI is currently seeking exemption from federal cabotage restrictions, which bar foreign airlines from operating domestic routes between US territories such as Guam and the CNMI. Governor Arnold Palacios mentioned this effort during his State of the Commonwealth Address, saying he had 'actively advocated for potential cabotage waiver [and] essential air services' in recent talks with federal agencies and congressional leaders. Palacios emphasized the importance of improved regional connectivity to support the CNMI's tourism-dependent economy. Senate public utilities, transportation and communications committee chair, Senator Jude Hofschneider called Propst's complaints a 'sad reality of economic times,' adding that United's pricing is 'likely a business decision by the air carrier'. Still, Hofschneider said the moment calls for greater support of Congresswoman Kimberlyn King-Hinds' bill introduced in April to requalify CNMI airports for the Essential Air Service (EAS) program. If passed, the measure would allow federal subsidies to fund daily round-trip flights even if commercial carriers withdraw service. A quote from CWM Travel International showed a Saipan-Guam roundtrip departing 8 June 8 and returning 12 June costing $420 – significantly cheaper than Propst's booking but still high for an inter-island flight. The EAS program, created in 1978 and stripped from CNMI eligibility in 2012, was intended to preserve air access for small US communities. King-Hinds' bill seeks to restore eligibility to Saipan, Tinian, and Rota by placing CNMI alongside Alaska, Hawaii, and Puerto Rico in exemption status.

3G Shutdown: What Devices Are Affected, And How To Upgrade
3G Shutdown: What Devices Are Affected, And How To Upgrade

Scoop

time6 hours ago

  • Scoop

3G Shutdown: What Devices Are Affected, And How To Upgrade

Article – RNZ Consumers are being urged to get ready ahead of the shutdown of 3G mobile networks from the end of the are being urged to get ready ahead of the shutdown of 3G mobile networks from the end of the year. Telecommunications Forum chief executive Paul Brislen said most New Zealanders were already using 4G or 5G-compatible devices and would not need to take any action. However anyone with a 3G-reliant phone or device may be affected, including tablets, medical alarms, security alarms, business equipment, vehicle trackers and other devices connected to the internet. 'The 3G shutdown is a positive step for our digital future, but it's important that anyone with 3G-reliant phones or devices checks now so they can stay connected,' Brislen said. Consumers can text '3G' to 550, free of charge, to check if their device will work after the 3G network was switched off. Spark announced it would close off its 3G network on 31 March, 2026 and was upgrading 3G-only cell towers to 4G and 5G technology. While affected customers would be receiving direct communication from Spark, it issued a list of common devices likely to be affected. iPhone 6 Huawei Y5 HMD Global Nokia 3310 Mobiwire SAS Pocket 2 Oppo A5 (AX5) Samsung Galaxy J2 Pro iPhone 5S Alcatel 1B Brislen said consumers who need to upgrade to a 4G or 5G compatible device should recycle their old handsets through recycling service RE:MOBILE at 'Mobile phones contain valuable materials that can be reused, as well as components that are harmful to the environment if sent to landfill.'

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store