27/07/2025
To our community,
Friday nightâs 1News interview with Fonterra CEO Miles Hurrell was difficult to watch, not just because of what was said, but how it was said.
Mr Hurrell spoke about the soaring price of butter which is now regularly between $8 and $11 per 500g block. He tells us that "80% of the cost is due to the global market." He smiled and shrugged as if this was something we should all accept, even celebrate, because, in his words, itâs a âgood news storyâ for New Zealand.
But letâs be clear global pricing is not the same as the cost of making butter.
Imagine if we, as a small cafĂ©, priced our scones at $9 and told our loyal customers, âSorry, thatâs what we could charge overseas.â Youâd be rightly outraged. So are we.
What people are asking, what cafĂ©s, households, and everyday Kiwis are asking is what it actually costs to produce that butter here in New Zealand. Not what Fonterra can get for it on the global stage. Thatâs not transparency. Thatâs diversion.
Mr Hurrell also insisted he understands what weâre going through, right before confirming heâs paid just under $6 million a year. With respect, the smirk that accompanied his answers said far more than his words.
Weâre told domestic discounts are âunsustainableâ for Fonterra. But somehow itâs sustainable for cafĂ©s like ours to sell butter-filled baking and food without passing on these massive costs. We donât charge $9 for a scone because we know our customers couldnât and shouldnât have to pay that. But we still need to pay our staff, rent, tax, and suppliers. So who exactly is subsidising whom?
Letâs not forget this:
New Zealanders built Fonterra. And when global demand softens, as it will, theyâll come back to us, expecting support and loyalty from the domestic market they just shrugged off.
Weâre not asking for handouts. Weâre asking for respect. For a seat at the table. For our voices to be heard. Weâre asking that companies like Fonterra remember that they don't just exist to feed the world, they also exist because of the people and businesses right here at home.
This post is for Fonterra. Itâs for Miles Hurrell. But most of all, itâs for you, our customers, who deserve honesty, accountability, and butter you can actually afford.
.co.nz Stuff
