Grocery retailer Nosh Food Market looks set to trigger a price war on milk by cutting the price of a brand of two litre mitre by more than half to $2.
Nosh says milk prices have risen 41% since 2007 and milk now costs relatively more in New Zealand than in Australia, South Africa, Britain and United States.
Co-founder Clinton Beuvink says he hopes the move will be a catalyst for permanently driving down the price of milk.
Nosh is cutting the price of the Cow & Gate brand milk to $2 per two litres - a 55% reduction from the normal retail price at Nosh stores.
It plans to fix the price in its six Nosh stores around Auckland and Hamilton until the end of February.
Coles in Australia last year dropped the price of its home-brand milk, spurring other supermarket chains to cut milk prices.
However, Progressive Enterprises which owns the Countdown supermarkets in New Zealand, says it has no immediate plans to drop the retail price of milk.