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Consumer NZ calls for resumption of milk price inquiry

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Thu, 12 Jan 2012 5:47a.m.

Fonterra's cutting is the wholesale price of domestic supplies starting from the end of this month

Fonterra's cutting is the wholesale price of domestic supplies starting from the end of this month

By 3 News online staff

Consumer New Zealand is hoping last year's Parliamentary inquiry into milk prices will now be revisited.

The call comes as Fonterra signals a drop in the price of wholesale domestic milk.

Chief Executive of Consumer New Zealand Sue Chetwin says a coalition pushed very hard to get the milk inquiry, but questions still remain.

"That inquiry, which was through the commerce select committee really didn't really make any recommendations before the election, so we're hoping that committee might reform and complete its inquiry into milk prices," says Ms Chetwin.

Fonterra is cutting the wholesale price of domestic supplies starting from the end of this month. It won't give exact figures, but describes the reduction as "modest".

The price cut applies to all brands bottled by Fonterra, like Anchor and Dairy Dale.

The latter usually costs around the $3 - $3.50 mark for two litres, whilst the former is usually over $4.50.

Fonterra also supplies Goodman Fielder, but that company hasn't yet said if its Meadowfresh brand will pass the savings on.

Both Progressive Enterprises and Foodstuffs say they are still in the process of deciding what savings can be passed onto consumers.

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Comments

12 Jan 2012 01:01p.m.

Zetlander wrote:

I'm still amazed at the price of milk here in NZ compared to overseas. Recently had friends from the UK staying with us and they couldn't believe the price of milk here. On checking Tesco's (UK) website, you can buy 2 litres of milk for £1.58 which is around NZ$3.04. Come on Fonterra, stop lining your pockets and give us Kiwis a fair go!

12 Jan 2012 10:39a.m.

ian wrote:

"Something does not smell right." Inquiry - no inquiry, -price freeze - price reduction, -and on and on.

12 Jan 2012 06:42a.m.

Mike wrote:

So we are back to the left leaning wanting a witch hunt.

Last year it was established that milk pricing was fair, but to appease the whinging whiners we had a price freeze that locked the milk price for 12 months, then when the price rose on the international market the price for domestic milk remained constant. The reverse when international milk prices dropped, the milk prices remained constant - this was explained before the price freeze but the idiots demanding action had not a brain cell between them so didn't understand what a price freeze really ment.

If the whinging whiners hadn't been out on a witch hunt then the price would have risen a litle higher, plus dropped lower, giving a price average less than we have paid this last year. So thanks whinging whiners, you helped make NZ pay more for the price of milk! Another inquiry, make NZ'rs pay continued higher prices seams what Sue is wanting for a bit of publicity for Consumer NZ.

What is Sue really after? She wants more subscriptions of the consumer and any publicity attached to consumer New Zealand is also publicity of the consumer magazine as publicity helps sales. So what we have is no independant, we have someone with an agenda trying to profit from NZ'rs uncertainty. Just remember it was such whinging whiners gave us the price freeze, and higher milk prices. The best for the consumer is market prices, not regulation and interference in prices. Its been shown in every industry around the world time and time again. If NZ is not going to subsidise dairy products like the EU, then NZ needs to pay market prices, but those market prices will reflect the market. Regulate a price and where the price would go down in the free market, it wont. Where the price would go up, the govt will need to eventually step in to pay the difference, ie subsidise.

If someone wants to pay 50% more for Anchor brand of the same milk, let them. They obviously dont have a budget to worry about and its better they spend it on a NZ owned/operated business like Fonterra than some imported goods.