McDonald’s New Zealand eyes local wheat for burger buns

McDonald’s New Zealand is in discussions with local arable farmers to explore the possibility of using locally grown grain for its burger buns. Currently, the fast-food chain sources its wheat from Australia, which is then processed in Auckland for bun production.

Ivan Lawrie, FAR’s general manager of business operations, expressed optimism about these talks, noting that the New Zealand Grown Grains certification program provides a solid framework for collaboration. He highlighted that past attempts to engage McDonald’s were unsuccessful due to economic barriers, as Australian wheat is cheaper to import than locally produced wheat.

Lawrie calculated that producing a 66-gram bun with 40 grams of flour would cost around 3.4 cents, excluding GST, based on the current price of $645 per tonne for New Zealand wheat. This cost represents only 0.5% of the value of a $6.52 Quarter Pounder burger. Even a 50% increase in wheat prices would only raise the bun’s cost from 4 cents to 6 cents, a negligible impact on the final product.

The arable industry produces approximately 100,000 tonnes of milling wheat annually, with potential for expansion if less feed wheat is grown. Securing McDonald’s as a customer would significantly boost the industry’s confidence and profitability, providing growers with long-term pricing stability and reducing reliance on market volatility. Lawrie emphasized that this move would align with McDonald’s commitment to supporting local producers and could lead to certification under the New Zealand Grown Grains trademark.