Barber’s argument hinges on the fact that New Zealand is an exporting nation whose prices are dictated by the global market. He notes that the strong international demand for butter, a product prized for its milk fat content, is the primary driver of its high price. This robust global appetite for New Zealand’s high-quality dairy products means that Fonterra, as a farmer-owned cooperative, is obligated to secure the best possible price for its shareholders. The notion that New Zealanders should receive a special, discounted price for butter is therefore fundamentally at odds with the cooperative’s core purpose.

The commentary also serves as a pointed critique of the media’s focus, which Barber says often overlooks the many positive aspects of the rural sector. The author suggests that this singular focus on butter prices is symptomatic of a lack of understanding about how the wider agribusiness sector operates and contributes to the national economy. This perspective highlights the need for a more balanced and informed public conversation about the value chain of food production and the economic health of the rural community.

Barber’s analysis delves into the underlying financial logic of the dairy industry. He argues that the market for dairy commodities, like coffee, is subject to global price fluctuations. When prices are high, it’s a positive development for dairy farmers, as it directly impacts their livelihoods and the profitability of their farms. To expect a local subsidy or a reduced price for butter would be to diminish the economic returns for the producers who form the backbone of the New Zealand economy.