Dairy prices local

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#1137673 25-Sep-2014 17:31

SepticSceptic: Get a cow

YEAH, NAH...

I milked cows for a whole year once, twice a day 6 days a week.

That was enough of that to be honest....!

JWR

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#1137675 25-Sep-2014 17:31

SepticSceptic: Get a cow

Why just a cow?

All mammals have nipples!

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#1137704 25-Sep-2014 18:08

Umm ... a goat?

coffeebaron

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#1137731 25-Sep-2014 18:44

I get my milk straight from the farm, yum!

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#1137741 25-Sep-2014 18:51

joker97: When milk price was 8.40/kg our local dairy product prices skyrocketted.

Next year milk price will be 5.30/kg. Our local dairy product prices will not be reduced.

one word - Fonterra

Two different products.

One price (the 5.30) is for milk solids, the other is for milk.

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t92300

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#1137747 25-Sep-2014 19:00

We do get milk cheap here http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11219871
I know of other small producers here that have been offered that same price.

Fonterra is not a monopoly for fresh milk and dairy products sales in NZ http://en.wikipedia.org/wiki/Goodman_Fielder and Meadow Fresh http://en.wikipedia.org/wiki/Meadow_Fresh

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#1137753 25-Sep-2014 19:21

coffeebaron: I get my milk straight from the farm, yum!

Me too!

$1.50/L AND it still has all the cream/fats/taste included... no factory fiddling and no middle market schenanigans, just fresh milk freshly milked and used within 2 days.

Lovely!

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Aredwood

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#1137755 25-Sep-2014 19:26

itxtme:
KiwiNZ:
itxtme: Interesting comment from the CEO on the news
We don't follow the volatile dairy payout rate, we follow inflation

Arent the two interconnected? And when the economy does well inspective of milk solid prices, inflation will increase. Therefore using his logic the price of milk should in fact increase.

The Dairy commodity prices in recent years up until this year have been moving up well in excess of the annual inflation rate

Yep never said they were directly proportional, just that they are interconnected.

2006 2L milk price $3.10
2014 2L milk price $4.30

41% increase, inflation is out of control!? Nope, they were influenced by global milk solid prices despite what the CEO says.

You are paying too much

The fruit and vege shop down the road from my house sells 2X 2L blue top or green top milk for $6.50 And 2X 2L Anchor silvertop milk in the so called lightproof bottles for $7 Also the Mad Butcher were advertising milk at $1 per litre not too long ago. Don't know what their milk is like as I buy the silvertop milk. Have also seen 1Kg blocks of cheese on special at Pak n Save for around $7 each.

When Fonterra was created, a law was passed that says fonterra must sell raw milk at a regulated wholesale price to anyone that wants to buy it. This is to allow a new dairy company to be started and immediately get enough milk to build economies of scale. This law is the reason so many Chinese companies have built baby formula factories here. As it means they can buy as much milk as they need without having to sign up farmers directly and build their own collection network.

If fonterra were really price gouging on milk, someone could easily set up their own bottling plant. And start selling milk for cheaper. In fact there is at least 1 company in NZ that does bottling under contract. So you could probably launch your own milk brand without even needing to own any factories. But the reason no one has done this yet? When the milk price last became a big issue in the media, everyone was complaining about fonterra. Until a dairy owner let slip that his cost price on a 2L bottle of milk was $1.50 (might have actually been $1.95) Either way it proved that the supermarkets were the ones gouging the prices. Not fonterra.

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#1137757 25-Sep-2014 19:27

t92300: We do get milk cheap here http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11219871

I don't think the $23 for 2l of NZ milk in a specialty shop in China quoted in the article is particularly relevant to local prices.

Probably a better comparison would be the UK, where currently you can buy 4pints/2.27L of milk from a supermarket for around £1/NZD$2 (although they have greater supermarket competition than our duopoly provides.)

t92300

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#1137827 25-Sep-2014 20:56

Probably a better comparison would be the UK, where currently you can buy 4pints/2.27L of milk from a supermarket for around £1/NZD$2 (although they have greater supermarket competition than our duopoly provides.)

The article said a supermarket in China

At $23 for a two-litre bottle of milk, the Shanghai supermarket price of Oravida's prize export is well beyond what any Kiwi could expect to pay at the local dairy.

We don't send fresh milk to the UK, we do however fly it to China.

UK milk is subsidised, though I think the subsidies may be coming off next year.
How many of the UK farmers are profitable?
https://agrihq.co.nz/article/overview-on-milk-prices-and-production-costs-world-wide-?p=214

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#1137831 25-Sep-2014 21:01

Aredwood:
If fonterra were really price gouging on milk, someone could easily set up their own bottling plant. And start selling milk for cheaper. In fact there is at least 1 company in NZ that does bottling under contract. So you could probably launch your own milk brand without even needing to own any factories. But the reason no one has done this yet? When the milk price last became a big issue in the media, everyone was complaining about fonterra. Until a dairy owner let slip that his cost price on a 2L bottle of milk was $1.50 (might have actually been $1.95) Either way it proved that the supermarkets were the ones gouging the prices. Not fonterra.

wow i would love to buy a supermarket!

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#1137906 25-Sep-2014 23:04

PhantomNVD:
coffeebaron: I get my milk straight from the farm, yum!

Me too!

$1.50/L AND it still has all the cream/fats/taste included... no factory fiddling and no middle market schenanigans, just fresh milk freshly milked and used within 2 days.

Lovely!

If you can find it and you want almost that but pasteurised etc, Lewis Road Creamery on Kapiti sell milk in 750ml bottles that look like old glass ones, as well as the best butter ever. I bought a bottle of silver top the other day and will confess it was empty by the time I had driven home - some 4 minutes later...!

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#1137908 25-Sep-2014 23:07

t92300:

Probably a better comparison would be the UK, where currently you can buy 4pints/2.27L of milk from a supermarket for around £1/NZD$2 (although they have greater supermarket competition than our duopoly provides.)

The article said a supermarket in China

At $23 for a two-litre bottle of milk, the Shanghai supermarket price of Oravida's prize export is well beyond what any Kiwi could expect to pay at the local dairy.

We don't send fresh milk to the UK, we do however fly it to China.

UK milk is subsidised, though I think the subsidies may be coming off next year.
How many of the UK farmers are profitable?
https://agrihq.co.nz/article/overview-on-milk-prices-and-production-costs-world-wide-?p=214

I suspect that CAP will continue to subsidise dairy farmers in Europe in one way or another.

The best one was Set Aside - payments for growing nowt on a percentage of your land! One infamous farmer used to collect a big enough cheque from the EU every year to buy a new Mercedes 500!

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#1137964 26-Sep-2014 07:34

99p for 2L in Northern Ireland at the service station, but there are more expensive options as well.

Jon

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#1137982 26-Sep-2014 08:35

joker97:
Aredwood:
If fonterra were really price gouging on milk, someone could easily set up their own bottling plant. And start selling milk for cheaper. In fact there is at least 1 company in NZ that does bottling under contract. So you could probably launch your own milk brand without even needing to own any factories. But the reason no one has done this yet? When the milk price last became a big issue in the media, everyone was complaining about fonterra. Until a dairy owner let slip that his cost price on a 2L bottle of milk was $1.50 (might have actually been $1.95) Either way it proved that the supermarkets were the ones gouging the prices. Not fonterra.

wow i would love to buy a supermarket!

So you can not be a douch bag, and pass on the dairy at reasonable prices? Right?
Otherwise the irony of this thread is too dense. (Complain about the price model, then want to be the one milking the rest of us).

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