1 Aug 2011

Inquiry into milk prices sought

9:06 pm on 1 August 2011

Consumer New Zealand says there needs to be more openness about the price of milk and it hopes the Commerce Commission will recommend further investigation.

The commission is due to announce on Tuesday whether a full price inquiry should be held.

After a number of complaints about the price of milk, the commission has been looking at the degree of competition in supply, manufacturing and retailing before deciding whether a full inquiry is needed.

Consumer New Zealand chief executive Sue Chetwin wants a deeper investigation. She says milk is a domestic staple, that is manufactured in New Zealand and consumers deserve to know more about how its price is set.

Ms Chetwin says while price controls are probably not ideal, an inquiry may come up with other alternatives.

Budgeting services also hope the commission will push ahead for a full inquiry into the price of milk, saying New Zealand families are being treated unfairly.

The Federation of Family Budgeting Services says milk is a nutritious staple that is becoming out of reach for some families because the price has been pushed up by overseas demand.