By Janika ter Ellen
3 News has received information from a supermarket insider showing the company he works for pays much less for milk than you might think.
The employee – who works for Foodstuffs – says the company pays just $1.22 for two litres of milk.
But the chain denies that, and says the mark-up it puts on the product ranges from 10 to 30 percent.
It's like white gold; a two litre bottle of milk often costs over $4 these days, but just who is making the profit?
“Farmers are claiming they only get 30 percent of the price of milk – so what on earth is happening to the other two thirds?” says Green MP Sue Kedgley.
According to a Foodstuffs insider who spoke to Campbell Live, it's going to supermarkets.
The leak says Foodstuffs is making more than they admit; paying Fonterra $1.22 for two litres.
Peter groves
“It's pretty surprising,” says shopper Peter Groves. “I expected about $2.50 or something they'd buy it in for.”
“I think there's going to be bit of an uproar about that.”
According to the insider:
- PAK’n Save pays Foodstuffs $1.55 for two litres
- New World pays $1.75
- Four Square pays $1.95
Today, 3 News checked the chains for their retail prices.
The Pams brand costs $3.95 at PAK’n Save, $4.09 at New World and $4.30 at Four Square.
But Foodstuffs' managing director Steve Anderson disputes the figures; insisting the company only puts a 10 to 30 percent mark-up on milk – and pays overheads on top.
“The fact is we've got to make a buck – and a reasonable buck – and I'm very comfortable we are being reasonable.”
The information comes as supermarkets in Australia aggressively undercut each other. At Coles, for example, two litres costs just $2; despite its prices, Foodstuffs insist it is competitive.
“There is no discussion with Progressive. I don't want to go to jail and it's not the right thing to do. We're a very ethical organisation,” Mr Anderson says.
But is that any consolation for shoppers?
3 News