27/07/2025
To our community,
Friday night’s 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, it’s a “good news story” for New Zealand.
But let’s be clear global pricing is not the same as the cost of making butter.
Imagine if we, as a small café, priced our scones at $9 and told our loyal customers, “Sorry, that’s what we could charge overseas.” You’d be rightly outraged. So are we.
What people are asking, what cafés, 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. That’s not transparency. That’s diversion.
Mr Hurrell also insisted he understands what we’re going through, right before confirming he’s paid just under $6 million a year. With respect, the smirk that accompanied his answers said far more than his words.
We’re told domestic discounts are “unsustainable” for Fonterra. But somehow it’s sustainable for cafés like ours to sell butter-filled baking and food without passing on these massive costs. We don’t charge $9 for a scone because we know our customers couldn’t and shouldn’t have to pay that. But we still need to pay our staff, rent, tax, and suppliers. So who exactly is subsidising whom?
Let’s not forget this:
New Zealanders built Fonterra. And when global demand softens, as it will, they’ll come back to us, expecting support and loyalty from the domestic market they just shrugged off.
We’re not asking for handouts. We’re asking for respect. For a seat at the table. For our voices to be heard. We’re 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. It’s for Miles Hurrell. But most of all, it’s for you, our customers, who deserve honesty, accountability, and butter you can actually afford.
.co.nz Stuff
