With tight supply and demand margins over the last few months, the New Zealand government body, Stats NZ are reporting that prices in the country for dairy products such as butter have increased by up to 46% in 12 months.
Overall, food prices increased 4.6% in shops across the 12 months to June 2025, according to figures released by Stats NZ.
The price increase for the grocery food group was due to higher prices for milk, butter, and cheese.
Nicola Growden, a spokesperson for Stats NZ said: “Dairy products continue to drive the higher cost in food prices.”
Growden highlighted how butter prices have increased by approximately NZ€5.00 in the last decade, a 120% rise.
Stats NZ outlined how butter prices are currently NZ$8.60/500g(€4.41).
The government body added that cheese has experienced a 30% rise in the last year, reaching NZ$13.04/kg (€6.69).
Milk has also climbed 14.3% in the 12 months, with consumers paying NZ$4.57 for 2 litres of milk in the shop (€2.34).
Consumers are also paying more in the shop for products such as meat and poultry, with 1kg of mince now costing NZ$21.73 (€11.14) on average, up from NZ$18.80 (€9.64) in June 2024.
Fonterra
As calving is currently underway on most dairy farms in New Zealand, the farmer-owned Fonterra group are forecasting a milk price of NZ$10.00/kg of milk solids (MS).
This will fall into an NZ$8.00-$11.00/kg/MS price range.
In June, Fonterra announced a profit after tax of NZ$1.158 billion in the third quarter (Q3) of the financial year, up NZ$119 million or 11% on this time last year.
As New Zealand and Fonterra are the largest dairy exporters in the world, more pressure on domestic supply and demand may be experienced in the wake of the government settling its Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) quota dispute with Canada.
This may lead to increased exports in dairy produce from New Zealand.
