Price spike in non-milk dairy products likely

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Tue, 12 Apr 2011 6:07p.m.

Prices of cheese, butter and yoghurt are all expected to rise

Prices of cheese, butter and yoghurt are all expected to rise

By Rachel Tiffen

A new round of price increases for dairy products, with the exception of fresh milk, appears to be on the way.

Goodman Fielder has told retail customers it is putting up the prices of its products, because Fonterra is charging more for the milk from which its dairy products are made.

The company is increasing the price of cheese and butter by nine percent, while yoghurt will increase six percent and spreads will rise by five percent.

Goodman Fielder would not return calls from 3 News, but statements from the two owners of New Zealand's largest supermarket chains indicate price rises are in store for dairy products other than fresh milk.

Foodstuffs, which operates New World and Pak 'n Save supermarkets, say the pricing for non-milk dairy products such as butter, cheese and yoghurt are continuously under review. And Progressive Enterprises, which owns Countdown, Woolworths and Foodtown, say any price increases to a supplier will ultimately be passed on to the New Zealand consumer.

The price for cheese at the supermarket is now almost as high as it was at the previous height of the dairy boom three years ago, while the cost of butter has never been so high.

The Commerce Commission is to decide within two months if it should have a formal inquiry into milk pricing and in coming to that decision it will also look at supermarket pricing.

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Comments

12 Apr 2011 10:10p.m.

Clarke wrote:

Some Opec countries charge the own citizens 17 cents a litre for gasoline, so why are you paying international commodity prices for milk?. The bulk of Fontera's product is sold overseas. If Fontera gave out free products to New Zealanders it would cost them barely anything, and why? because only 4 percent of fonteras total production is sold in New Zealand. Lets break up Fontera if they cant recognise that they owe us their existence, make farmers sell milk on their own... let them compete with each other and then watch the price of dairy products bottom out. You have alot more explaining to do Mr Ferrier. You are using NZ as your brand, we allow your company to act as a monopoly. If you intend to give Kiwis no breaks, why the hell should we continue to give them to you. Split up Fontera and be done with it.

12 Apr 2011 09:15p.m.

davey wrote:

What 30% on Cheese and 12% on butter makes our pension increase look good at $5-26 fortnight,just a bloody insult to those fought for this country,those who worked very long hours in Holyoak and Hollands days even had to take on two jobs to make a living to survive.This has been the National trend through out my life feed the Rich.Even after their terms we had worked and payed taxes twofold too the Government,the only relief we got was when Labour got into power with the help to the working class.Half or most who vote National would not know what the Nats had put the pensioners through,your own parents who had to strive for a living,and Their parents.A lot of them worked out in the rain to keep the roads open,the railway running,loading ships in port,lines men,farmers,etc etc just to get a kick in the guts by JOHN KEY and his associates and the Maori Party who shows no shame for their own people let alone remorse.