And the cheapest milk at Pak n Save today was...

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amiga500

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Topic # 240135 22-Aug-2018 13:58

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Pams 1L full cream UHT milk imported from Australia for $1.79 Sure it has an expiry date of early next year, but to be 50-60 c cheaper than any NZ milk, surely emphasises how the NZ milk consumer is subsidising the whole NZ milk industry.

There are so many excuses made for the price of NZ milk. Oh, it's the market model where Fonterra have to collect milk from the farmer, oh, we have to pay the international price of milk, or it's the duopoly of the two supermarket chains.

Well, I say the NZ market is ripe for some disruption such as one or both of the supermarket chains buying some farms and dairy factories - just like as in Australia. The whole NZ milk production model was set up to benefit farmers, Fonterra, and the supermarkets rather than consumer.

Oh, and I actually like the taste of the UHT!

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Reply # 2077432 22-Aug-2018 14:08

Why would the supermarkets bother , they still make money on all milk sold at any price and people will buy milk at any price.

Common sense is not as common as you think.

sbiddle

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Reply # 2077433 22-Aug-2018 14:09

And why is Milk cheaper in Australia? Because farmers are all making a loss and shutting up shop.

http://www.abc.net.au/news/rural/2018-06-30/dairy-exodus-in-nsw/9924892

mattwnz

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Reply # 2077448 22-Aug-2018 14:22

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The milk price hasn't really gone up much more than inflation over the years. Although I think the difference is the spike we sometimes get. There seems to be a major move at the moment in the media to discuss this topic, which IMO seems like a distraction from bigger issues.

Oblivian

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Reply # 2077458 22-Aug-2018 14:45

Australasian market is skewed for a lot of things.

Avacados from NZ Cheaper than we can buy them

Cadbury blocks - $5AU for normal price. 'made in Australia from imported and local products'. The cocoa and milk component was from here... local price $3NZ. But that's possibly driven by kiwi market demanding it not increase (the war over the size drop v price rise is still ripe with me)

Kiwi bacon on the shelf... go look at the packets. Made in Australia (NZ or Spain!) from local and imported product... It reared its head again recently showing only 2? on the shelf products were truly 100% nz.

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Reply # 2077460 22-Aug-2018 14:50

Oblivian:

Avacados from NZ Cheaper than we can buy them

You typically won't get NZ produced avocados cheaper in Australia than you will here - several media outlets got caught out in recent months claiming this because of photos taken in Australia where POS signage had COO labeling said "product of NZ or Australia" and people taking that as the product was from NZ. NZ exports a massive amount of avocados to Australia - but only early on in the season.

We typically do not export product in the 2nd half of the season where selling into the NZ market is far more valuable due to the inevitable price rises here as supply shortens.

Cadbury have been dumping chocolate for $2 block in recent weeks. Their market share is so poor they have to give the stuff away.

sbiddle

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Reply # 2077496 22-Aug-2018 14:59

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mattwnz:

The milk price hasn't really gone up much more than inflation over the years. Although I think the difference is the spike we sometimes get. There seems to be a major move at the moment in the media to discuss this topic, which IMO seems like a distraction from bigger issues.

The Stuff story about milk a few days ago was very interesting - clickbait headline and text in the story that changed after it was published.

https://www.stuff.co.nz/business/106140079/nzs-milk-price-whos-getting-rich

This sentence originally said the price in NZ was $1.75 which is the price of a 2L housebrand or budget brand milk. This was later changed to reflect the price of a premium brand (Anchor) presumably because it didn't really fit with their clickbait headline about how the price in NZ was astoundingly high.

"Particularly when considering that New Zealand is home to one of the world's largest dairy companies, Fonterra. The problem, however, is not restricted to milk. Other dairy products too have, in comparison with other industrialised nations, exceptionally high prices."

He said a litre of fresh milk in Germany was selling for the equivalent of $1.51, compared to $2.37 in New Zealand.

In light of milk being $1.51 in Germany and $1.75 in NZ it doesn't make out milk much more expensive. Dairy in Europe is a touchy subject, with the EU still buying very large quantities of milk powder simply to stockpile it and prevent it flooding the market. Just searching back to find a story I read a few months ago they have 380,000 metric tons stockpiled with no market for it. By handing out money to farmers and stockpiling milk they're keeping the industry sustainable, but as we all know tampering with a market doesn't always achieve what is intended.

Are our prices high? Yes they can be, with cheese in particular being a lot more expensive than even Australia.

You do have to put it into context though - would we prefer sustainable pricing where our farmers are at least making money, or would we prefer cheaper milk and be like Australia and the EU where the Government has to bail out farmers because they can't make money?

Oblivian

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Reply # 2077497 22-Aug-2018 14:59

sbiddle:

Oblivian:

Avacados from NZ Cheaper than we can buy them

You typically won't get NZ produced avocados cheaper in Australia than you will here - several media outlets got caught out in recent months claiming this because of photos taken in Australia where POS signage had COO labeling said "product of NZ or Australia" and people taking that as the product was from NZ. NZ exports a massive amount of avocados to Australia - but only early on in the season.

We typically do not export product in the 2nd half of the season where selling into the NZ market is far more valuable due to the inevitable price rises here as supply shortens.

Hrm. Sure looked cheap on the shelves while I was there end of Jun/Start Jul. About the time the bars weren't doing guacamole :) But yes, can't confirm origin 100% (not a consumer myself)

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Reply # 2077508 22-Aug-2018 15:06

Oblivian:

sbiddle:

Oblivian:

Avacados from NZ Cheaper than we can buy them

You typically won't get NZ produced avocados cheaper in Australia than you will here - several media outlets got caught out in recent months claiming this because of photos taken in Australia where POS signage had COO labeling said "product of NZ or Australia" and people taking that as the product was from NZ. NZ exports a massive amount of avocados to Australia - but only early on in the season.

We typically do not export product in the 2nd half of the season where selling into the NZ market is far more valuable due to the inevitable price rises here as supply shortens.

Hrm. Sure looked cheap on the shelves while I was there end of Jun/Start Jul. About the time the bars weren't doing guacamole :) But yes, can't confirm origin 100% (not a consumer myself)

100% Australian product at that time of year.

Why would any NZ pack house send product to Australia and get $1.00 - $1.50 for it when they could get at least 2-3 times that for it on the local market here due to the shortage of product?

In previous years NZ has started importing product from Australia to cover the usual shortage that often happens from April - July, but there are a lot of additional biosecurity steps in place now that limit the areas product can come from and you can't irradiate avocados.

amiga500

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Reply # 2077545 22-Aug-2018 16:02

sbiddle:

And why is Milk cheaper in Australia? Because farmers are all making a loss and shutting up shop.

http://www.abc.net.au/news/rural/2018-06-30/dairy-exodus-in-nsw/9924892

So, is a lot of that situation climate related & all the costs that go with that?

amiga500

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Reply # 2077556 22-Aug-2018 16:08

vexxxboy:

Why would the supermarkets bother , they still make money on all milk sold at any price and people will buy milk at any price.

I guess I should buy milk from a dairy instead of the supermarket. It's a habit thing really. Maybe I will keep buying UHT from the supermarkets for the next week or so and see if I like it so much!

UHD

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Reply # 2077576 22-Aug-2018 17:02

amiga500:

...the NZ milk consumer is subsidising the whole NZ milk industry

Do you mean the way we are paying global price for our globally exported product?

Kyanar

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Reply # 2077588 22-Aug-2018 17:43

amiga500:

Well, I say the NZ market is ripe for some disruption such as one or both of the supermarket chains buying some farms and dairy factories - just like as in Australia.

No it isn't. Coles and Woolworths do not own dairy farms or factories. They contract to producers, same as Foodstuffs and Progressive do in NZ. Most of it at least is from Norco, which is still a farmer owned co-operative, rather than Lion Nathan/Kirin or Parmalait.

mattwnz

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Reply # 2077608 22-Aug-2018 18:01

Just on avocados, my local supermarket was selling them for $1 each, for large ones. Although we had to go through the bin to find the good ones. Inside they were perfect with no brown areas. So I wonder if they are making a loss on those, as I wonder what the growers get. I suspect there is a lot of waste, as at high prices, they are more liekly to sit on the chelves and go bad.