Ninety one percent of respondents to a Consumer NZ survey think they are paying a high price for milk compared with other supermarket staples and 79 percent agree there should be a government inquiry into milk pricing practices.
Consumer NZ commissioned a survey over the weekend of 1000 New Zealanders asking for their views about milk and other dairy prices. Chief Executive Sue Chetwin said the survey showed 66 percent of people were aware that one milk processing company (Fonterra) collected 90 percent of all milk produced in this country and 79 percent either agreed or strongly agreed that that led to higher prices for consumers.
Eighty percent either agreed or strongly agreed that greater competition in the domestic dairy industry would mean lower prices.
Consumer NZ is calling for an inquiry into dairy prices following steep increases in the price of milk and other dairy products.
Chetwin said Fonterra claimed New Zealanders were paying international prices for milk and other dairy products, but there was a concern that in fact New Zealanders might be paying even more than international prices because of the lack of competition here. The only major competitor in the local market is Goodman Fielder, which has to buy its milk from Fonterra.
A recent Ministry of Agriculture and Forestry report admitted it did not know if there was sufficient competition in the domestic milk market.
Chetwin said the survey showed 50 percent of people thought pricing was unclear and 76 percent were concerned at the price they paid.
Consumer NZ has formed a coalition with other community groups to push for a government inquiry into dairy pricing. Those groups include the Federation of Family Budgeting Services, the Salvation Army, Barnados, Manaia Health PHO, Child Poverty Action Group, Presbyterian Support and Grey Power.
The survey results can be viewed here (Excel spreadsheet 55KB).
Contact Consumer NZ CEO - Sue Chetwin
Mob 021 472748
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Stephen shop around. Milk varies considerably in price with the supermarkets usually dearer than service stations and dairies.
The raw price of milk isn't the issue. Supermarkets are free to use whatever markup they like, and they do. So controlling the raw price of milk won't make any difference.
Open Country is the 2nd largest dairy company in NZ followed by Synlait. Neither of them are in the domestic market, yet still are entitled to take DIRA milk from Fonterra which they then EXPORT. This is crazy. All DIRA milk should have to be used for the DOMESTIC market. It should not be allowed to be exported. Thing is, OC and Synlait won't want it then as they are well aware that there is more money to be made in the export market than the domestic market.
Fish, meat, and vegetables have risen more in price than dairy and the first two have big players in the market. I hear no call for an inquiry in to how they are priced.
Wonderful to see my membership helping to try and bring about a decent drop in the price of milk. When the likes of Coke is cheaper than milk at the supermarket, it's not a healthy looking future for our kids. (don't decision-makers buy their milk from the same place as the rest of us?) We all talk about it, but no-one has the strength or know-how to make a difference. Good on you Consumer for helping to make a change that'll be good for us all.