Supermarkets say a drop in farm gate prices for milk products may not necessarily mean a fall in their retail prices.
Fonterra on Tuesday announced a reduction of 30 cents in its forecast price to farmers for the current season, to $6.05 per kilogram of milk solids because of a slide in world prices.
The company says supermarkets have reduced their retail prices for milk in the past month, but this may not be a result of a reduced payout.
Foodstuffs, which runs New World, Pak N' Save and Four Square, says it has already reduced prices for milk after they fell on international markets last month.
Progressive Enterprises, which owns the Countdown stores, will say only that it sets prices based on deals done with suppliers, as well as stock levels and competition.
