"Kiwis not getting a raw deal" on butter prices

[Lilith7]

According to Cruella de Ville, aka Nicola Willis those complaining about the cost of butter aren't getting a raw deal. Which is all very well for her, others though are likely to be struggling.
I'm glad I use an olive oil spread instead.



She also said that her meeting with head of Fonterra, Miles Hurrell was 'constructive & engaging'.... but when RNZ approached him he wouldn't be interviewed.

"But I get it. Butter is expensive right now"...I wonder whether anyone actually asked her the price of butter at present. I'd put money on her not having a clue.

https://www.odt.co.nz/news/national/kiwi...willis-rnz

[Oh_hunnihunni]

Bullshit.

One term government.

[Lilith7]

Bullshit.

One term government.

Oh, I do hope so - 'they're worth it.'...

And then the next govt had best undo all the damage this lot have done, as fast as possible.

[jim157]

you do understand our prices are tied to international markets .....dont you?

[Oh_hunnihunni]

You do understand pricing is a choice right? Like purchasing.

[Lilith7]

you do understand our prices are tied to international markets .....dont you?

 Perhaps you've not heard but sometimes there can be both an overseas price & a domestic price for the same product....

[harm_less]

you do understand our prices are tied to international markets .....dont you?

 Perhaps you've not heard but sometimes there can be both an overseas price & a domestic price for the same product....

Maybe but Fonterra in this case are paying their farmers a price based on international price parameters so if they reduce prices for domestic destined products then who wears the lower price. 

Do they pay some of their suppliers less because their milk is destined for the NZ market? I suspect the farmers wouldn't be lining up for that deal. 

Do Fonterra take a hit on products sold in NZ using milk bought at international linked price? Can't see that being popular as Fonterra's intent is to maximise profits for their shareholders so again it would impact farmers, just over a wider base.

Opening up NZ's imports of butter from other countries may help to apply market pressures on Fonterra but there will be many who prefer we maintain a protectionist approach to our primary industries.

Not a simple issue to address for sure. I'm just happy to be dairy intolerant so not directly affected by this kerfuffle.

[Oh_hunnihunni]

Pricing is a choice. Tourists pay more than locals regularly, and justifiably. Gold carders get special discounts, platinum card holders get all sorts of benefits. Farmers didn't suffer when some months back that big lamb export order fell through and lots of consumers could suddenly afford to try roast lamb again, till it was all gone.

Please do not tell me that Fonterra has no choice. That's just mealy mouthed self serving rubbish.

[king1]

i think they could do it if they wanted to, but it would have to be the farmers/shareholders that put the pressure on Fonterra to do so.

The farmers will be being paid on the year end profitability of Fonterra, divvied up to the farmers based on kgs of milk solid or whatever measure they use. It's not like any particular farmer would lose out just because their contribution was used to supply the NZ market.

and the NZ market was only 5% of their sales so in the grand scheme of things it would likely be but a few cents off their expected payout of $8-11

But it all conflicts completely with the 'only responsibility is to maximise profits' mantra...

[Lilith7]

 Perhaps you've not heard but sometimes there can be both an overseas price & a domestic price for the same product....

Maybe but Fonterra in this case are paying their farmers a price based on international price parameters so if they reduce prices for domestic destined products then who wears the lower price. 

Do they pay some of their suppliers less because their milk is destined for the NZ market? I suspect the farmers wouldn't be lining up for that deal. 

Do Fonterra take a hit on products sold in NZ using milk bought at international linked price? Can't see that being popular as Fonterra's intent is to maximise profits for their shareholders so again it would impact farmers, just over a wider base.

Opening up NZ's imports of butter from other countries may help to apply market pressures on Fonterra but there will be many who prefer we maintain a protectionist approach to our primary industries.

Not a simple issue to address for sure. I'm just happy to be dairy intolerant so not directly affected by this kerfuffle.

I think it may be time that we stopped encouraging the worst in human nature; Fonterra doesn't have to make massive profits to survive. 

But of course it isn't only Fonterra; greed has dazzled plenty of other businesses around the world thanks to Neo Liberalism.

[Lilith7]

And then there's this...'farm lobbyists'


https://newsroom.co.nz/2025/07/25/who-be...-part-two/

"On November 28, 2023, the day after he was sworn in as Associate Minister of Agriculture, Andrew Hoggard received a text message.
“Congrats for yesterday Andrew, what a massive honour!!” wrote Federated Farmers president Wayne Langford. “Will see you Wednesday night.”
It’s no surprise the men are friendly. When Hoggard was the lobby group’s president, Langford was his vice president. That is until May 2023, when Hoggard announced he was leaving to stand in the general election as an Act Party candidate – something he called “rural politics’ worst-kept secret”.


Their relationship raises questions about influence. Not everyone has access to a minister – let alone their phone number, or a pre-planned meeting with them a few days later.

But there’s also a level of familiarity not common to all ministerial relationships.

“Hey,” Langford writes in an undated text message, “we are just drawing up the industry agreed position on farm plans, we have a national council meeting on Monday where [we] will present it, does that work for us to get it to you after that?”
Within a minute, Hoggard replies: “Yep really good timing.”

[Lilith7]

Satire

PSA from Fonterra CEO

https://www.facebook.com/watch?v=924493543167511

[jim157]

Maybe but Fonterra in this case are paying their farmers a price based on international price parameters so if they reduce prices for domestic destined products then who wears the lower price. 

Do they pay some of their suppliers less because their milk is destined for the NZ market? I suspect the farmers wouldn't be lining up for that deal. 

Do Fonterra take a hit on products sold in NZ using milk bought at international linked price? Can't see that being popular as Fonterra's intent is to maximise profits for their shareholders so again it would impact farmers, just over a wider base.

Opening up NZ's imports of butter from other countries may help to apply market pressures on Fonterra but there will be many who prefer we maintain a protectionist approach to our primary industries.

Not a simple issue to address for sure. I'm just happy to be dairy intolerant so not directly affected by this kerfuffle.

I think it may be time that we stopped encouraging the worst in human nature; Fonterra doesn't have to make massive profits to survive. 

But of course it isn't only Fonterra; greed has dazzled plenty of other businesses around the world thanks to Neo Liberalism.

ever run a business? i highly doubt it by your comments

[Lilith7]

I think it may be time that we stopped encouraging the worst in human nature; Fonterra doesn't have to make massive profits to survive. 

But of course it isn't only Fonterra; greed has dazzled plenty of other businesses around the world thanks to Neo Liberalism.

ever run a business? i highly doubt it by your comments

Have another look....

PSA from Fonterra CEO

https://www.facebook.com/watch?v=924493543167511

[Oh_hunnihunni]

Love it, lol...

[nzoomed]

 Perhaps you've not heard but sometimes there can be both an overseas price & a domestic price for the same product....

Maybe but Fonterra in this case are paying their farmers a price based on international price parameters so if they reduce prices for domestic destined products then who wears the lower price. 

Do they pay some of their suppliers less because their milk is destined for the NZ market? I suspect the farmers wouldn't be lining up for that deal. 

Do Fonterra take a hit on products sold in NZ using milk bought at international linked price? Can't see that being popular as Fonterra's intent is to maximise profits for their shareholders so again it would impact farmers, just over a wider base.

Opening up NZ's imports of butter from other countries may help to apply market pressures on Fonterra but there will be many who prefer we maintain a protectionist approach to our primary industries.

Not a simple issue to address for sure. I'm just happy to be dairy intolerant so not directly affected by this kerfuffle.

That is likely the problem, because farmers get paid international prices, then there is no easy way to regulate the prices without fonterra having to front the (potential) loss.
I bet there is a huge profit margin on all sales however, then there is the middle man supplier between them and the supermarket who slaps on a profit just for moving stuff on.
Domestic sales of dairy products are like only 5% or less of their total sales, the rest gets exported, so it is a small amount of their profit.
When I was in Costco last month, they sell 1KG blocks of NZ made butter for $10, how are they able to do it for half the price and still sell for a profit?
I highly doubt Costco sell any of their products at a loss, some speculate that their memberships offset the profit loss, but I dont know if thats 100% correct how their business model works.
I know their kirkland butter is produced by a Chinese company based here, perhaps they pay their farmers less? Im not too sure, but they are definitely able to supply what appears to be a high quality product for less.
I imagine we are being ripped off quite a bit for most of our food, thats capitalism for you.

[Oh_hunnihunni]

Factor in though, the very bad PR Fonterra and the industry is reaping from this. More fodder for those pesky Greenies calling for responsible climate change mitigation strategies to be put on the lot of them...

If this government does turn out to be a oncer, those birds are likely to come home to roost.

[Lilith7]

Factor in though, the very bad PR Fonterra and the industry is reaping from this. More fodder for those pesky Greenies calling for responsible climate change mitigation strategies to be put on the lot of them...

If this government does turn out to be a oncer,  those birds are likely to come home to roost.

Indeed they almost certainly will.

I've wondered lately, if this lot came in with the intention of doing as much damage as they could - as in even more extreme & harmful Neo Liberalism - knowing it meant that they'd be a one term govt.

Either way, whoever wants to be in govt next had best make it clear that they'll remove most of what these destructive idiots have done as swiftly as possible & damn well do so.

And you're right;  I think the stopping of pay equity for women & the way they've treated nurses will quickly prove to be pigeons, hell bent on coming home to roost.

Serves the b'stards right...

[jim157]

Factor in though, the very bad PR Fonterra and the industry is reaping from this. More fodder for those pesky Greenies calling for responsible climate change mitigation strategies to be put on the lot of them...

If this government does turn out to be a oncer,  those birds are likely to come home to roost.

yea be fantastic if labour and their coalition mates get hold of the chequebook again

[harm_less]

Factor in though, the very bad PR Fonterra and the industry is reaping from this. More fodder for those pesky Greenies calling for responsible climate change mitigation strategies to be put on the lot of them...

If this government does turn out to be a oncer,  those birds are likely to come home to roost.

yea be fantastic if labour and their coalition mates get hold of the chequebook again

Damn right. It would be far better than the current government's locking the cheque book in the bottom drawer with the economy nose diving as a result. The arse is falling out of the retail, manufacturing and social services sectors with hundreds of Kiwi's heading overseas daily at present while the country's infrastructure is starved for maintenance and upgrades by Nicky No Boats and her cronies. Next wake up call will be our defaulting on emissions targets with the export restrictions, and now potentially legal repercussions, from our neighbours and major trading partners.

Turning our economic circumstances around is going to take a totally fresh approach and definitely won't happen overnight, or in a single government term.