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Topic # 152383 24-Sep-2014 21:02
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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

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  Reply # 1136950 24-Sep-2014 21:33
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I avoid Dairys like a plague. 
I go to a local service station. Generally their food isnt expired and they dont turn the power off the chillers at night etc..




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  Reply # 1136956 24-Sep-2014 21:37
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They've got to get their farmers new utes somehow! :/

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  Reply # 1136972 24-Sep-2014 22:03
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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


I know someone who works for Fonterra.

They buy milk, cheese etc from the staff shop at massive discount - at least 50% and if you assume that even then Fonterra are making a profit, you can see how much the supermarket duopoly adds to the price.

Last week she bought 12 500g blocks of Mainland Vintage for $10. Not each - $10 for all 12! Presently they retail at $11 each in our local Countdown.....







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  Reply # 1136984 24-Sep-2014 22:09
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i say vote with the feet



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  Reply # 1136986 24-Sep-2014 22:09
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how much do they save with CRT?

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  Reply # 1137053 25-Sep-2014 05:58
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Don't always associate dairies as expensive. Two local dairies and 4Square near me all sell Milk (2L Anchor Calci) for 60c-80c less than Countdown.


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  Reply # 1137054 25-Sep-2014 06:13
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I have a feeling the word dairy is getting mixed up.

I assume the op was talking about dairy (milked based products) and how that Fonterra states that we have high prices in NZ because they have to match global prices.  However when global prices go down, our prices don't.

Then follow up posters started talking about Dairies (corner store, milk bar, 7/11) as expensive/ poor quality.

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  Reply # 1137068 25-Sep-2014 08:02
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blackjack17: I have a feeling the word dairy is getting mixed up.

I assume the op was talking about dairy (milked based products) and how that Fonterra states that we have high prices in NZ because they have to match global prices.  However when global prices go down, our prices don't.

Then follow up posters started talking about Dairies (corner store, milk bar, 7/11) as expensive/ poor quality.


agreed.

My point is that dairy products are expensive full stop. If Fonterra can sell Anchor to staff for $3 for 2 liters and $133 retail value of cheese for just $10 then we must look to the retailers be they supermarket or corner shop for the answer on why we pay so much.





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  Reply # 1137070 25-Sep-2014 08:06
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How does one avoid supporting Fontera? As I understand it most milk/dairy products in the supermarket come from Fontera.

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  Reply # 1137103 25-Sep-2014 08:55
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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. money-mouth

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  Reply # 1137107 25-Sep-2014 08:58
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Noodles: How does one avoid supporting Fontera? As I understand it most milk/dairy products in the supermarket come from Fontera.


They do and more or less, you don't avoid it.

The price gouging comes more from the supermarkets than Fonterra. Fonterra auctions milk internationally and the price it sells at is dictated by that. The bloated add ons come from Countdown, New World, P&S etc etc.





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  Reply # 1137108 25-Sep-2014 09:00
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One thing i did notice in AU the other month was no fancy Fontera  type milk packaging.  Guess the Ozzys aren't as gullible as kiwis.   I even saw milk packed in clear plastic bottles.  About A$3.20 in the super market for 2 liters.




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  Reply # 1137122 25-Sep-2014 09:18
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old3eyes: One thing i did notice in AU the other month was no fancy Fontera  type milk packaging.  Guess the Ozzys aren't as gullible as kiwis.   I even saw milk packed in clear plastic bottles.  About A$3.20 in the super market for 2 liters.


Clear plastic bottles? Not unlike the clear glass bottles milk was delivered to our house in every day by the milkman for at least the first 25 years of my life then...!! Tasted just fine then - better, in fact, as I find glass a better material for liquids (same applies to Coke, strangely - it always tastes better in glass bottles).





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  Reply # 1137127 25-Sep-2014 09:24
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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. money-mouth


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

http://www.interest.co.nz/rural-data/dairy-industry-payout-history




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  Reply # 1137174 25-Sep-2014 10:07
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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. money-mouth


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. 

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