11 Jan 2012

Fonterra to lower wholesale domestic milk price

5:23 pm on 11 January 2012

Dairy cooperative Fonterra has announced it will be dropping its wholesale domestic milk price at the end of January, which should result in lower milk prices.

A spokesperson for Fonterra says it is the retailer that sets the price of milk, but the company expects to see local prices fall slightly.

The reduction in the cost of milk marks the end of a year-long price freeze designed to shield consumers from big increases in international prices.

The spokesperson says while international dairy prices have softened since the costs hit their peaks last year, they were rising again.