Price of milk: looking for some answers

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Tue, 02 Aug 2011 7:00p.m.

Commerce Commission chairman Dr Mark Berry

Commerce Commission chairman Dr Mark Berry

For the past few months New Zealanders have talked about the rising price of milk.

Why is it so expensive? Why is it cheaper in Australia?

Is paying international prices for something we make here simply the reality of the commodity market?

The Commerce Commission says milk price controls aren’t required, but are New Zealanders getting the answers they need?

Cambell Live spoke to the head of Northland’s Manaia Health, Chris Farrelly, who first blew the whistle on the price of milk nearly six months ago.

Watch the video for the full report

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Comments

08 Aug 2011 01:31p.m.

Andrew wrote:

Why are farmers getting a hard time when the most recent inflationary spike in food came not from farmers, but from grocery items and 'non-alcoholic beverages' like water. In June, Statistics NZ had two-litres of milk steady at $3.68 while a 750ml bottle of water increased 5.8 percent to $2.19. How can you justify $2.19 for water when all you have to do is bottle the stuff. Creating milk is a slightly more expensive product to manufacture!!

03 Aug 2011 08:02p.m.

Tim and Jeanette wrote:

Every one is bithcing about the price of milk at $4.60 for a 2ltr yet we are a dairy country and a decent steak is $10 plus, a nice leg of lamb is $20 plus. All the good meat gets sent overseas so we get seconds why is nobody looking at the meat industry. Yes i work for Fonterra but i was empolyed at southdown before they closed down so i know what i'm talking about.

03 Aug 2011 08:01p.m.

John wrote:

I dont understand why everyone's picking on the milk suppliers. The new All Blacks rugby top is $220 with the replica version costing $190 but you can buy them in the UK for about $120. The English equivalent shirt costs $180 with a replica alternative at $95.

03 Aug 2011 07:19p.m.

Alan wrote:

I have a friend who is the manager of a large supermarket,he told me this- ' we take a hit selling alcohol so cheaply so to make up for that loss we put a huge mark up on milk' This,to me,is an abuse of privilege and should send a clear message that supermarkets are not responsible enough to be allowed to sell alcohol.N.Zers have had a guts full of pandering to drunks.

03 Aug 2011 07:19p.m.

Russell wrote:

Was just listening to the interview on your show with the lady about milk prices and I agree its not the farmers who are uping the prices but Fonterra and the supermarkets I can buy Milk at my local dairy for $3 a 2 litre but at the supermarket down the road its $4.40 for the same it about time someone did something instead of talking rubbish and getting nowhere dairy farmers are doing a fantastic job (and no I'm not involved in farming)but from the farm gates onwards everyones out to make a penny and it has to stop the end user which is the general public cant keep lining the corporate giants pockets I for one have had a guts full of high prices for the necessities in life the government wont help they are gaining on this as well thanks National no vote from me this year!! Thanks

03 Aug 2011 07:17p.m.

Farmers from Te Awamutu wrote:

Hi John,We are dairy farmers and we buy our milk from the supermarket.We are criticized severely by other people for being farmers and making the price of milk so high.We are on wages and work just like others out there and keep our nose to the grindstone and yes like others we are upset at the price we pay too.I would just like people to not bully or condemn the farmers for something that is way out of our control.Without the man on the land doing his bit for NZ economy this country would not survive very well at all without the farming community.With thanks Cheza

03 Aug 2011 07:16p.m.

Aaron wrote:

The lady in Kapati needs to put up a hotwire and run 3-4 sheep to keep the grass down, bet the usless good for nothing council would reconsider then, and if not at least her price of lamb would be cheap. AP

03 Aug 2011 07:13p.m.

Anne Moore wrote:

Yes the price of milk is rediculous when we have so much of it in the country but another concern is the amount of milk solids that they take out of the milk and the cream so that the goodness is no longer there. Cream does not hold its stiffness and takes twice as long to whip and mi9lk is watery as seen when you mix it in scrambled eggs, which I do on a regular basis as a cook in a rest home.

03 Aug 2011 06:50p.m.

Bruce wrote:

the present fiasco with the N.Z consumer being ripped off with the price of milk, is a direct result from the way the government deregulated the dairy industry, with the intent on enabling the nz dairy industry to become a global success , while neglecting to protect the general pulic of NZ from after effects,combined with the mistake the commerce commision made in allowing Fonterra to monopolise the local dairy market. The only winners from these decissions have been Fonterra and supermarkets, while the losers have been the general public of N.Z. along with the old "Town Milk" suppliers who had to switch to "Factory supply" thus losing lifestyle, and income. Oh and another important loser is the enviroment, the creeks, rivers and estuary's inclusive of the wildlife etc dependant on them. I recall certain people predicting this was coming, shame no one listened...Bruce

03 Aug 2011 06:19p.m.

aaron wrote:

Cmon New zealand the reason kiwis pay so much for milk is the fact that the tax is colected at the farm gate then from fonterra and when it leaves the shop shelves.The government is taxing to high and kiwis are paying to much for the essentials.Petrol is another classic example.We cant just keep putting the onus on the retailers the government needs to lead by example