How the once humble butter became 'yellow gold' in New Zealand

Global supply and demand have led to high prices for butter, which is not just indispensable in home baking, but also ubiquitous in cafes.

- Ong Hui Fang

In Wellington, butter costs NZ$8.60 ($6.40) for a 500g block, a nearly 50 per cent hike from a year ago, and more than double the price a decade ago. Once a humble kitchen staple in the 'land of cows', butter has now earned notoriety as New Zealand's "yellow gold". PHOTO: ONG HUI TANG

(PHOTO: ONG HUI TANG PHOTO: COURTESY OF KALEB HALVERSON PHOTO: COURTESY OF EMALYN JIANG)

During a recent trip back to Singapore, my friends complained about how inflation had driven up food prices at traditional breakfast joints such as Ya Kun Kaya Toast.

Living in New Zealand and often making my own kaya toast, I could instantly relate to their experience, as the ingredients that go into the Singapore staple have become costlier. And the real pain for me comes from the thick slab of butter that goes into it.

In Wellington, butter costs NZ$8.60 (S$6.40) for a 500g block, a nearly 50 per cent hike from a year ago, and more than double the price a decade ago.

Once a humble kitchen staple in the "land of cows", butter has now earned notoriety as New Zealand's "yellow gold".

Kiwis are understandably upset: How can a country with 5.9 million dairy cows - more than its human population - and the world’s top dairy exporter, generating NZ$27 billion in export earnings in 2024 and employing 55,000 people, not keep its own butter affordable?

After all, New Zealanders not only take pride in producing premium quality grass-fed butter for the world, they are also one of the largest consumers of butter globally, consuming 6.14kg per capita in 2024, according to Clal, an Italian dairy economic consulting firm.

Butter is not just indispensable in home baking, but also ubiquitous in cafes often given as a generous knob with toasts and scones.

The reason behind high prices, economists say, is global supply and demand.