Latest news with #Kaye'sBakery
Otago Daily Times
2 days ago
- Business
- Otago Daily Times
Butter proving to be a popular fundraiser
While the skyrocketing price of butter may be leaving a bitter taste in the mouths of some, one non-profit saw a golden opportunity. Southland Paws Rescue founder Amy Greig said the organisation made $1 profit on each of the 5560 blocks of butter it sold in its latest fundraiser. Ms Greig said it was the first time it had sold butter and it had been the most successful fundraiser to date. The orders for the 250g Westland Gold blocks started rolling in thick and fast after a post about it was placed on their social media page. "Word of mouth got around and people started ordering." Jingo and cheese rolls had been used to raise revenue in the past, but the butter was less work and easier to sell. One buyer ordered $1000 of butter while ironically, 500 blocks were ordered by staff from a local dairy processing factory. Ms Greig said several orders had been received from people who made cakes for others. Prices were initially marginally lower than supermarkets, but even from the time they first started receiving orders at the start of May, Westgold community fundraising prices had risen from $4 to $5.15. "I'd rather put that dollar that we got back into a local organisation for what we do . . . than letting that supermarket profit that dollar." Orders had to be prepaid and picked up once the delivery had been made because of the logistical challenge of storing pallet loads of butter. Funds raised paid for the care of the multitudes of animals the charity looked after throughout the year. While they had a good relationship with their vet, their bill still needed to be paid. Some animal healthcare expenses ran more than $1000. Leithfield School in Canterbury sold 10,000 blocks of the golden dairy bars in a recent fundraiser, RNZ said. Invercargill's Kaye's Bakery had been importing Australian butter by 10-tonne shipments to make its biscuits. Kaye's Bakery owner Luella Penniall said three years ago the company was paying $11 per kg — now it was up to $15. Stats New Zealand data shows prices have increased more than 65% in the 12 months ending at April 2025. Stats NZ also said dairy prices were the main driver for food price increases — increasing the food price index by 3.7%. The average cost for 500g of butter was $7.42, 12 months ago. Butter hit a record high of $7992 a tonne early in May before falling to $7821 in mid-May. By Toni McDonald
Scoop
22-05-2025
- Business
- Scoop
Southland Bakery Says Butter Too Expensive To Buy From NZ Dairy Companies
, Journalist Skyrocketing butter prices have forced a commercial bakery in the dairy heartland of Southland to scour the global market for cheaper alternatives. Kaye's Bakery in Invercargill sells belgian biscuits, afghans and other sweet treats in supermarkets and dairies nationwide, often using butter from Australia to make its products. Luella Penniall owns the family business started by her parents Lois and Evan in the 1970s. She orders in 10 tonnes of butter at a time. If the bakery is making large quantities of butter shortbread to order that increases the requirements. She said it was too expensive for the bakery to buy butter directly from dairy companies in New Zealand, despite being located in the centre of 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. 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," Penniall said. "I'll get supplied either Australian or New Zealand butter but out of an Australian broker." Penniall preferred to support New Zealand farmers but when Australian butter cost less, that's what she used. "There's no difference from 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 America on the table in a trial. "We were offered butter out of America. 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," Penniall said. And while others might swap out margarine for butter, customers buy Kaye's biscuits for their buttery quality. The company is now grappling with price rises for all its key ingredients which will need to be passed on soon. "We do struggle with the cost of butter," Penniall said. "Go back to 2022, only three years ago we were paying around $11 per kilo, and now we're paying $14 if not $15 dollars a kilo," she said. "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 anytime soon. "I think it's the new way of that particular dairy product," she said. At last night's global dairy trade auction the price of butter fell 1.5 percent to US$7821 dollars a tonne, after hitting a record high of US$7992 dollars 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 dollars per kilo of milk solids. Stats NZ data shows butter prices have increased significantly over the past year, with prices up over 65 percent in the 12 months to April.
Otago Daily Times
21-05-2025
- Business
- Otago Daily Times
South Island bakery using Aussie butter as NZ dairy too expensive
By Penny Miles of RNZ Skyrocketing butter prices have forced a commercial bakery in the dairy heartland of Southland to scour the global market for cheaper alternatives. Kaye's Bakery in Invercargill sells Belgium biscuits, afghans and other sweet treats in supermarkets and dairies nationwide, often using butter from Australia to make its products. Luella Penniall owns the family business started by her parents Lois and Evan in the 1970s and says she orders in 10 tonnes of butter at a time. If the bakery is making large quantities of butter shortbread to order that increases the requirements. Penniall said it was too expensive for the bakery to buy butter directly from dairy companies in New Zealand, despite being located in the centre of 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. 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 Kiwis farmers, but when Australian butter cost less that's what she used. "There's no difference from 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 America on the table in a trial. "We were offered butter out of America. 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," Penniall said. And while others might swap out margarine for butter, customers buy Kaye's biscuits for their buttery quality. The company is now grappling with price rises for all its key ingredients which will need to be passed on soon. "We do struggle with the cost of butter," Penniall said. "Go back to 2022, only three years ago we were paying around $11 per kilo, and now we're paying $14 if not $15 dollars a kilo," she said. "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 anytime soon. "I think it's the new way of that particular dairy product." At last night's global dairy trade auction the price of butter fell 1.5% to $UD7821 a tonne, after hitting a record high of $US7992 at the previous auction earlier this month. The strength of world prices meant dairy farmers were poised to receive record payouts of at least $10 per kilo of milk solids. Stats NZ data showed butter prices had increased significantly over the past year, with prices up over 65% in the 12 months to April.
Otago Daily Times
21-05-2025
- Business
- Otago Daily Times
Southland bakery using Aussie broker for butter
By Penny Miles of RNZ Skyrocketing butter prices have forced a commercial bakery in the dairy heartland of Southland to scour the global market for cheaper alternatives. Kaye's Bakery in Invercargill sells Belgium biscuits, afghans and other sweet treats in supermarkets and dairies nationwide, often using butter from Australia to make its products. Luella Penniall owns the family business started by her parents Lois and Evan in the 1970s and says she orders in 10 tonnes of butter at a time. If the bakery is making large quantities of butter shortbread to order that increases the requirements. Penniall said it was too expensive for the bakery to buy butter directly from dairy companies in New Zealand, despite being located in the centre of 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. 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 Kiwis farmers, but when Australian butter cost less that's what she used. "There's no difference from 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 America on the table in a trial. "We were offered butter out of America. 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," Penniall said. And while others might swap out margarine for butter, customers buy Kaye's biscuits for their buttery quality. The company is now grappling with price rises for all its key ingredients which will need to be passed on soon. "We do struggle with the cost of butter," Penniall said. "Go back to 2022, only three years ago we were paying around $11 per kilo, and now we're paying $14 if not $15 dollars a kilo," she said. "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 anytime soon. "I think it's the new way of that particular dairy product." At last night's global dairy trade auction the price of butter fell 1.5% to $UD7821 a tonne, after hitting a record high of $US7992 at the previous auction earlier this month. The strength of world prices meant dairy farmers were poised to receive record payouts of at least $10 per kilo of milk solids. Stats NZ data showed butter prices had increased significantly over the past year, with prices up over 65% in the 12 months to April.
RNZ News
21-05-2025
- Business
- RNZ News
Southland bakery says butter too expensive to buy from NZ dairy companies
Family owned business Kaye's bakery in Invercargill makes belgian biscuits, afghans and slices sold in supermarkets and dairies. Photo: supplied Skyrocketing butter prices have forced a commercial bakery in the dairy heartland of Southland to scour the global market for cheaper alternatives. Kaye's Bakery in Invercargill sells belgian biscuits, afghans and other sweet treats in supermarkets and dairies nationwide, often using butter from Australia to make its products. Luella Penniall owns the family business started by her parents Lois and Evan in the 1970s. She orders in 10 tonnes of butter at a time. If the bakery is making large quantities of butter shortbread to order that increases the requirements. She said it was too expensive for the bakery to buy butter directly from dairy companies in New Zealand, despite being located in the centre of 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. 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," Penniall said. "I'll get supplied either Australian or New Zealand butter but out of an Australian broker." Kaye's commercial bakery owner Luella Penniall (centre) with her parents Lois & Evan Penniall who founded the Invercargill company in the 1970s. Photo: supplied Penniall preferred to support New Zealand farmers but when Australian butter cost less, that's what she used. "There's no difference from 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 America on the table in a trial. "We were offered butter out of America. 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," Penniall said. And while others might swap out margarine for butter, customers buy Kaye's biscuits for their buttery quality. The company is now grappling with price rises for all its key ingredients which will need to be passed on soon. "We do struggle with the cost of butter," Penniall said. "Go back to 2022, only three years ago we were paying around $11 per kilo, and now we're paying $14 if not $15 dollars a kilo," she said. "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 anytime soon. "I think it's the new way of that particular dairy product," she said. At last night's global dairy trade auction the price of butter fell 1.5 percent to US$7821 dollars a tonne, after hitting a record high of US$7992 dollars 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 dollars per kilo of milk solids. Stats NZ data shows butter prices have increased significantly over the past year, with prices up over 65 percent in the 12 months to April. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
