Sue Chetwin today called on the Commerce Select Committee to decide tomorrow, when it meets, to commence a formal inquiry into dairy prices in New Zealand.

Consumer NZ leads a coalition of community groups seeking an inquiry into dairy pricing.

The Committee will consider whether to launch such an inquiry tomorrow morning in a public hearing to be held from 9:10 to 9:25 in Parliament Buildings. At that time the Committee will receive a briefing from officials from the Ministry of Agriculture and Forestry.

"New Zealanders were promised a competitive milk market when Fonterra was set up in 2001. After ten years of rising milk prices, it is time for the Committee to hold an inquiry into what has gone wrong," said Ms Chetwin.

Ms Chetwin said that the legislation establishing Fonterra may need to be changed if it has failed to ensure that milk markets are competitive and protect New Zealanders from monopoly milk prices.

"It is outrageous that milk and cheese are so expensive in New Zealand, when this country is one of the biggest producers of dairy produce in the world," said Ms Chetwin.

Ms Chetwin said that the Committee needed to hold an inquiry into dairy markets in New Zealand urgently.

"If there is something wrong with the regulatory framework for milk markets, it needs to be identified and fixed as soon as possible. Kiwis shouldn't have to scrimp and save to buy milk and cheese."

Parliament will be rising in October, said Ms Chetwin, so there is no time to waste.

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Garbage... Posted by: MacThistle 13 Jul 2011 9:00pm

And who do you work for Daniel? Fonterra?
Like Mark and many others, I see no reason why we in NZ should be subsidizing any country for any of our products!
The way things are going, our jobs are up for grabs to China because heaven forbid we cost to much to pay! Oh right, so thats why many of us are struggling to pay the everyday necessarys!
The sunday roast hasnt graced our table in months it is so over priced and on it goes.

International Prices Posted by: Daniel F 16 Jun 2011 8:55pm

There is nothing wrong with paying the international price for milk - I came back from aus this week and in Coles and Woolworths paid AU$2 for 2 litres of storebrand milk (and also noted that 10 litres of skim milk powder cost AU$5.95 when not on special).

While 2 litres here may cost NZ$3.50 compared to the NZ $2.60 the aussies pay, it is important that the New Zealand consumer continue to subsidise the international price in order that the NZ industry remains efficient and cost competitive overseas.

International Prices Posted by: Mark Nieman 09 Jun 2011 10:27pm

I get so sick of hearing the argument that NZ has to pay the international price for dairy products. I don't know of any large Middle Eastern oil producing nations that have to pay international prices for oil.

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