Milk Price – Grey Power

Milk Price – Grey Power

Grey Power has called on dairy giant Fonterra to immediately drop the price of milk and other dairy products in the wake of falling international dairy prices.

Today (December 10) cut its forecast milk price to farmers for this season from $5.30/kg to $4.70/kg in response to a declining international market which has prices fall by half since February but there has been no corresponding fall in supermarket prices.

Grey Power national president Terry King said milk, cheese and other dairy products were important grocery items for most people over 50 and prices at the supermarket had risen steadily in the past five years.

“When prices went up we were told we had no option but to pay the international price even though the milk and cheese was produced in New Zealand. Now international prices have come back it is only fair and reasonable that super market prices should follow suit.”

Mr King said Fonterra dropped prices for local consumers when international returns fell in 2012 but there had been a steady increase for domestic consumers in the last two years.

A two litre bottle of Anchor blue-top milk currently costs $4.40 at Countdown supermarkets and a 1kg block of Mainland tasty cheese costs $12.50.

Mr King said he understood the cost of the milk itself made up only a small part of what customers paid at supermarkets.

“We know there is the cost of transport, packaging, processing and distribution to be taken into account but, with such a substantial fall in international prices, there should be some reduction for domestic consumers.”

Mr King said petrol prices had fallen quickly in response to falling international oil prices with little encouragement from motorists but Fonterra was in a privileged position in the New Zealand domestic dairy market.

Perhaps it is time for the Government to step in and give some direction ion the matter,” Mr King said.

www.greypower.co.nz

ENDS

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