Dairy giant New Zealand endures butter price shock

BUTTER prices have soared in dairy export giant New Zealand, latest figures showed yesterday, with local supplies cut short as the industry chases fatter profits overseas.

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The dairy price shock spreads as far as cheese and milk, leading one economist to suggest locals face the grim prospect of cereal without milk if they want to save money.

Butter prices leapt 46.5% in the year to June to an average of NZ$8.60 (R91) for a 500-gram block, according to official data from Stats New Zealand.

Milk prices surged 14.3% over the same period, while cheese shot up 30%.

High dairy prices have hit the headlines in New Zealand, with media outlet Stuff reporting that “exorbitant” prices are unlikely to “melt away” any time soon.