endless demand for Australian dairy and baby formula is behind the butter price rises – and it will soon force bakeries to switch from using butter to margarine to survive.
Sausage rolls and croissants will start tasting different as bakeries deal with a 30 per cent increase in the cost of butter.
The value of dairy exports to China in 2016-17 was about $403 million, up from $144m five years prior.
IBISWorld figures also reveal China is taking 67 per cent of Australia’s $45m infant formula export market, compared to 26 per cent five years ago.
IBISWorld senior analyst Sam Johnson said there is a link between China’s insatiable demand for infant baby formula and the price of our butter.
“Many dairy processors have diverted production towards more value-added products that attract a premium,” he said.