Finance Minister Nicola Willis initiated the discussion, having alerted Fonterra to her intention to address butter pricing in their routine dialogue. Willis had previously expressed a keen interest in dissecting the cost components of butter and investigating whether supermarkets were contributing disproportionately to the high prices, drawing comparisons to seemingly cheaper butter available in Australia. Her focus was particularly on the margins added along the dairy supply chain.

Willis acknowledged Fonterra’s transparency regarding its milk price determination for farmers. However, she indicated a lack of clarity on how those farm-gate prices then translate into the final retail cost of butter. Emphasizing the consumer impact, she noted that even a marginal increase of “10 or 20 cents… really matters when you’re a Kiwi family at the supermarket checkout,” highlighting the sensitivity of dairy economics to household budgets.

The meeting took place at Parliament on Tuesday evening, reflecting the high-level attention given to the issue. Despite the “constructive” label from a Fonterra spokesperson, both Minister Willis’s office and Fonterra chief executive Miles Hurrell declined to comment on the outcome immediately after the discussions. Hurrell, when approached by media, indicated he would speak further later in the week, maintaining a cautious stance on disclosing specifics post-meeting.