How much cash goes off shore when you buy imported Butter?

We recently bought butter WITHOUT CHECKING THE COUNTRY OF ORIGIN -Oops

It’s just 500 grams of butter – not much eh?

Let’s do the calculations.

Dairy Australia says the average milk price in Victoria – where most of Australia’s butter is made was 44.2 cents per litre last year – there will have been higher and lower prices – depending on the season. Note: prices were higher a couple of years ago https://www.dairyaustralia.com.au/industry/prices/farmgate-milk-price

It takes about 10 litres of milk to make 500 grams of butter containing 411grams of fat (82.1% as per the label) (all milk varies, but this is pretty right)

That means an Australian (Victorian) Farmer would get $4.42 for the milk this was made from.

The processor would separate the milk –

Make the butter and

Make about 1kg of Skim milk and Butter milk powder – the milk powder probably would be exported or used to fortify modified milks, or Yoghurt. Let’s assume its exported – the current world price in Aussie$ is $4100 per Tonne or $4.10 per kg

http://www.agriculture.gov.au/milkpriceindex

The butter, is advertised on-line is $5.00 per 500 grams

https://www.woolworths.com.au/shop/search/products?searchTerm=butter

So

By buying this butter (without checking the country of origin)

We have –

Deprived the Australian farmer of $4.42

Deprived the Australian processors of $4.41 export income (Note: making powder requires a lot of capital for dryers, tankers, staff etc)

There will be more – such as local marketers, artwork providers, etc.

The moral if the story BUY LOCAL – CHECK THE LABEL. IT IS IMPORTANT TO OUR ECONOMY.

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