The introduction of cut-price American butter at some Pak’nSave supermarkets in New Zealand is causing confusion among shoppers. Many are struggling to differentiate it from local butter due to its similar yellow packaging.
This American butter, imported in bulk by Dairyworks, comes in 500 gram blocks and is priced between $6.49 and $6.99. In comparison, local butter prices start at around $7.29 for home brand products.
Since its arrival about one to two months ago, the product has drawn attention not only for its pricing but also for its packaging. Some consumers have noted that this American butter does not have the typical yellow color associated with New Zealand butter.
According to Karl Dean from Federated Farmers, “The American product should have clearer country of origin labelling, so consumers know exactly what they’re buying.” He emphasized that many people find the country of origin labelling a bit hard to find.
Dairyworks, which is owned by Synlait, has taken advantage of lower American butter prices to offset freight costs—shipping over 12,000 kilometers from the U.S. The company also imports some cheese but is currently focusing on this butter trial.
Maja Szarmach from Dairyworks mentioned, “It was always intended as a test for us,” adding that they are pleased with how the product has been performing so far.
As discussions continue around consumer confusion and labeling practices, it remains unclear how long this trial will last or whether it will lead to permanent changes in supermarket offerings.
