3 Aug 2011

NZ milk price rises less than global commodity price

1:44 pm on 3 August 2011

A report on competition in the dairy market has concluded that retail milk prices in New Zealand have risen at a lower rate than global dairy prices.

Consumers have been told that they're having to pay more for milk and other dairy products mainly because of the increased international dairy prices, which also drive the prices that farmers are paid for their milk.

A recently-released report that Fonterra commissioned from US competition consultancy Compass Lexecon shows that retail competition has shielded consumers here from the full effects of those world prices.

The report's main author, Dr Robert Willig says the retail price of fresh pasteurised milk has risen 25-27% over a decade, compared to a 67% increase in global prices for the commodity dairy products, due to increased retail and wholesale competition in New Zealand.