Butter me up, New Zealand

New Zealand butter is in hot demand amid a global shortage, that's seen the price skyrocket by over 100 percent in the last year.

It's led to a serious price hike at home in New Zealand, with a 500g block of butter now over $5.

Kevin Gilbert relies on New Zealand butter to make a living and the Dunedin baker just can't get by without it. 

With a global shortage Mr Gilbert says he is not the only one clamouring for the New Zealand product. 

"I've just come back from a conference in Australia, a baker's conference in Australia, and everybody says New Zealand butter is the best, so everyone wants our butter," he says.

The shortage has hit France hard which is going through its worst butter shortage since World War II. 

Australia is struggling too - filling the gap with New Zealand butter. 

"When the international price rises like it has, it inevitably means the prices in New Zealand will go up because the exporters have a choice between supplying the export market or the domestic market," Dairy Companies Association of New Zealand spokesman Malcolm Bailey says.

Local demand for butter is also up as consumers swap margarine for butter and blue top milk.

The price of butter is hurting his small businesses that rely on the product.

"We're going to have to find a way of either mitigating the cost, by finding an alternative, or by passing that cost on," Mr Gilbert says.