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Butter prices soar because of Chinese demand in Australia

  • Baked goods like sausage rolls, biscuits and croissants may all taste different
  • Butter is being replaced by margarine in a bid to continue production
  • Shop owners said they’d rather use margarine than charge customers more
  • The price of butter has increased by 30 per cent in 12 months said Dairy Australia

Australian bakeries will be forced to switch from using butter to margarine as China continues to import the nation’s dairy products.

As Christmas time approaches delicious staples like sausage rolls, fruit mince pies, biscuits and croissants will likely increase in price and taste considerably different.

The value of dairy exports to China this year was almost $403 million compared to just over $144 million just five years ago.

As Christmas time approaches delicious staples like sausage rolls, Swiss rolls, biscuits and croissants will likely increase in price and taste considerably different

IBISWorld senior analyst Sam Johnson said the link between China’s insatiable desire for Aussie dairy products and a price hike is undeniable.

‘Rising production of higher priced dairy products has reduced butter supply, contributing to higher butter prices,’ he told The Daily Telegraph.

‘Despite high butter prices, many Australian dairy processors have yet to respond with significantly higher output, instead continuing to channel milk into production of value-added products.’

Those ‘value-adding products’ have so far seen margarine being added into the baker’s mix  – which while cheaper, doesn’t taste the same.

IBISWorld senior analyst Sam Johnson said the link between China's insatiable desire for Aussie dairy products and a price hike is undeniable

IBISWorld senior analyst Sam Johnson said the link between China’s insatiable desire for Aussie dairy products and a price hike is undeniable

Essence Patisserie owner Brendan Giardina said that he’d tasted tarts and shortbreads which were trying the 50/50 approach of butter and margarine.

So far, it doesn’t seem to be measuring up.

‘By using half butter and half substitute you get about 70 per cent of the original flavour,’ he said.

Other bakery owners agreed, stating that their customers wouldn’t pay more just to have pure-butter products.

According to Dairy Australia the price of butter has increased by 30 per cent in 12 months. 

Other bakery owners agreed, stating that their customers wouldn't pay more just to have pure-butter products

Other bakery owners agreed, stating that their customers wouldn’t pay more just to have pure-butter products

Read more at DailyMail.co.uk


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