New Zealanders are driving cross-country for hours in pursuit of cheap butter while some are ordering it from Australia or even churning their own cream, as the country battles sky-high dairy prices. Despite dairy being the country’s largest export industry, recent figures from Stats NZ show domestic butter prices surged 65% in the year to March, pushing the average price for 500g to $7.42 (£3.30) – that’s up about $3 from this time last year. People have been queiung at Costco in Auckland to bulk buy its cheaper blocks, prompting the wholesaler to cap shoppers’ purchases to 30 blocks per shopper. Kaleb Halverson – who has earned the nicknames “Costco cowboy” and “butter bandit” – has started a side-hustle driving the 10-hour round trip from Taranaki to Auckland to stock up on cheap butter for his community. Halverson, who started a Facebook page offering to deliver Costco goods to his region, was inundated with requests for butter. “Demand was crazy – there were quite a few people wanting five to 10 packs each,” he told news outlet Stuff. A Canterbury school recently used butter to fundraise, instead of the usual baked goods or chocolate. Leithfield School principal Rob Cavanagh told Stuff the response to the fundraiser had been “pretty overwhelming”, with 19,000 blocks sold. “I wasn’t quite aware of what a popular commodity butter is in this day and age.” Meanwhile, some people are using social media to teach others how to make their own butter, and bakeries across the country have reported making the tough choice to either increase their prices or face closure. Owner of Kayes Bakery based in Southland, Luella Penniall, said she was frustrated at having to import cheaper alternatives, despite living in a country that produces so much dairy produce. New Zealand is the world’s top dairy exporter, producing a third of the world’s dairy trade. The industry represents about $11.3bn or 3.2% of New Zealand’s GDP, and plays a significant role in regional economies. Penniall uses an Australian broker to find the best priced butter of the right quality, which often results in half her butter order being shipped from Australia. Kayes Bakery uses roughly three tonnes of butter every two months. The business is “surrounded by dairy farms” and Penniall would prefer to use New Zealand products but the cost can be prohibitive. “Farmers deserve everything they get, they work hard, but somewhere in between it seems to be getting out of control.” Global supply problems and high demand for New Zealand’s products are driving local prices higher, according to the chief executive of Infometrics, Brad Olsen. About 95% of New Zealand’s dairy products are exported, which means the international market determines domestic prices. It is “a double-edged sword”, where high prices are good for the country’s economy but tough for domestic shoppers, Olsen said. “I’m not saying that at the moment its the right happy balance, but given that commodity prices … are going to be dictated by the international market, that is sort of how the game is played.”