Supermarkets & Government to Blame for Milk Prices

Published: Tue 27 Sep 2016 09:08 AM
Richard Prosser MP
Spokesperson for Primary Industries
Supermarkets & Government to Blame for Milk Prices, Not Farmers
New Zealand First says it is wrong for people to blame dairy farmers for the price of milk in supermarkets when it is the supermarket chains and the government who are milking the profits.
“While Fonterra has confirmed an increase in the milk payout, that doesn’t mean farmers are making the profit – quite the contrary,” says Primary Industries Spokesperson Richard Prosser.
“New Zealand First understands the frustration when commentators compare the price of milk in New Zealand with that of Britain, showing that New Zealanders can pay three times as much.
“Consumers might pay $2.19 for one litre of milk in New Zealand while in Britain’s Tesco supermarket chain it might be only 79 cents a litre.
“However, the milk payout forecast price means farmers will only receive 44c per litre (up from the current 33c) and not for another year.
“Britain is a different market to New Zealand. There are tens of millions of consumers and farming is still subsidised by the government.
“New Zealand’s two supermarket chains should drop their prices, but not by making the cuts at the producers’ end.
“The government could do their bit too, by removing GST from milk. That at least will drop the price by 15%.
“It’s obvious who’s creaming it, and it isn’t the farmer who milks the cows,” says Mr Prosser.

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