New Zealand made butter gains ground in Australian generic brands

New Zealand butter is finding its way into Australian supermarket refrigerators, edging out its homegrown equivalents.

A covert cascade of New Zealand-made butter is making its way onto Australian supermarket shelves, edging out its homegrown equivalents.

Both Coles and Woolworths are selling 250 gram blocks of New Zealand-made butter at $3.70, although the country-of-origin is not prominently branded.

The retail arch rivals also stock Australian made 250g blocks at an identically priced $4.30. The slightly more expensive butter takes up less shelf space at both retailers.

In the 500g generic brand stakes, both supermarkets are selling Kiwi butter at $6.40.

Only Coles is offering a generic 500g block of Australian butter, priced at $6.90.

Given its reliance on foreign produce, Aldi surprisingly stocks only Australian-made generic butter. Aldi’s Pure Valley 250g line retails at $3.69 while its 500g block is priced at $6.39.

Rabobank senior dairy analyst Michael Harvey said despite the trans-Tasman transport costs, New Zealand have a butter advantage.

“Milk supply nationally is under pressure in Australia,” he said. “When you’ve got a stable drinking milk market and growing exports, it means milk for domestic manufacturing is under pressure. New Zealand are competitive in terms of getting product on the shelf, because they’ve got open access to our market.”

While the NZ dairy sector has the upper hand in Australian supermarkets over locally-sourced produce, Australian canola farmers can breathe easy.

Generic yellow spreads — either butter and oil blends or straight margarine — are mostly Australian made.

Both Coles and Woolworths stock what they call either “dairy spreads” or “dairy blends” which are majority Australian sourced.

A Coles spokesman said the New Zealand produce was just one of several butter options on supermarket shelves.

“Our focus is on providing value and choice for customers when they shop,” the spokesman said. “To meet customer demand, we stock premium quality Australian-made butter, as well as an alternative from New Zealand which provides an option for customers looking for great value.”

A Woolworths spokesman also said the supermarket wanted to provide price point options for thrifty customers.

“The Essentials brand is our value brand for customers and generally will be priced below Woolworths branded products,” the spokesman said.

“Currently to provide value for our customers our Essentials butter is sourced from New Zealand, some of which is packaged in Australia.”

Aldi management were contacted by The Weekly Times but did not respond by deadline.