Not only the EU was introduced to cheap American butter last year, but Australia and, more recently, New Zealand have also seen the product arrive. The difference is that in the EU, the American butter went to the industry, and no one dared to introduce it to consumers, while in Australia and New Zealand, it's readily available in supermarkets.
Many consumers don't appreciate this, according to reports. While the product is cheaper, the color and flavor are not what most Aussies and Kiwis are used to: too white and bland. They perceive it as an inferior product.
Many Australian consumers felt particularly ripped off late last year when supermarket chain Woolworths offered American butter in a New Zealand disguise. The packaging looked familiar, but the contents were disappointing, even though it was offered for the same price as genuine New Zealand butter.
In New Zealand, American butter is currently being offered on a trial basis. Supermarkets see a business case for it, as the margins look attractive, but will consumers buy it?