Consumer New Zealand expects domestic milk prices will drop soon.
Chief executive Sue Chetwin has welcomed a suggestion by Fonterra that domestic dairy prices should fall after months of softening of global prices.
Despite Fonterra's argument that the global price drives domestic retail prices, she says milk should be cheaper in New Zealand because there are not the same transport and production costs.
Ms Chetwin says domestic prices are not as competitive as they could be due to having one large dairy company and two supermarket chains.
