Source: Radio New Zealand
The Burtfield’s brand is imported from the United States by Dairyworks and packaged at their Christchurch site in the suburb of Hornby. supplied
Cut-price American butter on supermarket shelves is causing confusion among some shoppers because it’s packaged exactly like the Kiwi product.
The Burtfield’s & Co brand is sold at some Pak’nSave supermarkets around the country, where it undercuts New Zealand product on price.
Imported in bulk by Dairyworks, it’s packaged in 500 gram blocks and wrapped in familiar yellow paper at the company’s Canterbury site in the Christchurch suburb of Hornby.
Federated Farmers dairy chair Karl Dean said the American product should have clearer country of origin labelling, so consumers know exactly what they’re buying.
Some people have missed the small print on the back stating the butter is packed in New Zealand and imported from the United States.
“Obviously for the consumer it is a possible alternative,” Karl Dean said
“But I would say the comments that have been raised online, many people find the country of origin labelling a bit hard to find.”
The sunny yellow block (left) is New Zealand made product, while the American butter from grain fed cows is a paler tone. supplied
Usually the international brands are typically easier to distinguish on the shelves, he said.
Some consumers have been surprised when they’ve opened a block at home, because it doesn’t resemble the sunny yellow colour they’re used to seeing.
“There is international butter that’s sold in New Zealand, but I think that’s in foil packaging, it’s in a smaller block, a more premium type product,” Karl Dean said.
“Where as here we have a product that looks very, very similar in terms of our paper packaging.”
Dairyworks head of marketing and innovation Maja Szarmach said the USA product has “certainly created some healthy debate.”
“It was always intended as a test for us,” she said.
“It’s actually going pretty well. We’re really pleased with how it’s been performing so far. It has been around for a month or two.”
The paler product, coming from grain fed cows is priced in the range of $6.49 to $6.99 for a 500 gram block.
Value focused local butter is starting at around $7.29 for home brand products in the same sized packet.
The Dairyworks spokesperson said the company took advantage of a period when American butter prices were low enough to offset freight costs for the 12,000 or so kilometre trip.
“If you think about NZ butter, it is a premium global product, most of the butter that is produced here is exported,” Szarmach said.
“So local prices are pretty much driven by global market rates not just what it might cost to produce the butter here.
“Think of it as a bit of an opportunity, or a window where the US butter price was at a bit of a low, so we could source that butter and bring it into New Zealand at a competitive price.”
Dairyworks is owned by Synlait. It also imports some cheese from abroad, but it won’t be rushing to bring more in at that at this stage.
“We’re pretty proud to obviously have a lot of great Kiwi cheese right at our doorstep and within our portfolio,” she said.
“There’s definitely potential for that, but at the moment we’re just focussing on this butter and seeing how that goes as a trial.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand