The Milk Report
The Milk Report
Milk is a household essential,
especially for families with young mouths to feed. So the
Oily Rag Research Department wanted to know how much people
are paying for milk, and come up with ways to make savings.
This column outlines results of our survey.
The survey was conducted via www.oilyrag.co.nz. More than 600 responses came in from all across the country (even Australia!). To keep things simple we compared the cost of a two-litre bottle of standard blue stop non-organic milk. This is what we found:
• There is a
significant difference in the retail price. One person said
they pay $3.25 for milk at their supermarket which sells for
$4.60 at their local dairy.
• The same milk is
bottled under different brands and sold at different prices.
• The retail price of milk processed by small
independent producers is significantly cheaper than their
much larger competitors.
• The lowest price for
a standard 2-litre bottle was $2.40 for Dairy Dale brand at
a speciality food outlet in Manukau. The highest price was
$5.20 for Anchor brand from a dairy in Wellington.
•
The retail market for milk is made up of various brands. At
the “premium price” end is Anchor and Meadow Fresh,
produced by Fonterra and NZ Dairy Foods respectively. At the
mid-price range are supermarket house brands, and at the
lowest price point are the discount brands of Dairy Dale and
Dairy Fresh (also produced by Fonterra and NZ Dairy Foods
respectively). These discount brands compete directly with
the independent producer brands that are all priced
significantly below the other brands.
• The
retail price of all four independent milk processors was the
lowest, averaging $2.80. The two discount brands, Dairy Dale
and Dairy Fresh, averaged $2.92, while supermarket house
brands (Signature, Home Brand, Pams and Budget) averaged
$3.21. The two premium brands (Anchor and Meadow Fresh) were
significantly higher at an average $4.48.
• The
cheapest place to buy milk is at speciality food outlets (eg
ethnic food outlets and butchers) and fruit and vegetable
retailers, with an average price of $2.84. Many of these
outlets also offered a discount for two-bottles, typically 2
for $5, which reduced the average price further.
•
Dairies and petrol stations are, in general, the most
expensive places to buy milk, with average retail prices of
$3.40 and $3.46 respectively, although a number do retail
the discount brands at under $3 or offer buy-two specials.
• Supermarkets had an average retail price of
$3.25.
Here’s how you can save money when buying milk:
1. Be more aware of price. There is a
significant variation in price for what is essentially the
same milk. If you are paying more than $3.50 for a 2-litre
bottle of standard milk you are paying too much.
2.
Buy one of the independent brands (Klondyke, Fresha Valley,
Green Valley and Al & Son) or a discount brand (Dairy Dale
or Dairy Fresh). If these are not available purchase a
supermarket house brand (like Signature, Home Brand, Pams
and Budget).
3. Look for the buy two specials,
particularly 2 for $5 deals offered by fruit retailers and
speciality foods places. It would appear as though these
outlets are discounting the retail price of milk to attract
customers to their outlets.
Many thanks to those
who took part in our milk price survey. A full copy of the
Milk report will be posted on www.oilyrag.co.nz
* Frank
and Muriel Newman are the authors of Living off the Smell
of an Oily Rag in NZ. Readers can submit their oily rag
tips on-line at www.oilyrag.co.nz. The book is available
from bookstores and online at www.oilyrag.co.nz.
ENDS