Fonterra boss claims Kiwis paying 'fair' price for milk

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http://tvnz.co.nz/national-news/minister-seeks-parliamentary-milk-price-probe-4341462?ref=rss&utm_medium=twitter&utm_source=twitterfeed

The price of milk is set to come under the microscope again.
Agriculture Minister David Carter wants a parliamentary inquiry to investigate whether New Zealanders are being ripped off with milk prices.
  
Many New Zealanders are wondering why milk is so expensive when this country is one of the world's biggest dairy exporters.
Last week the Commerce Commission decided not to hold an inquiry into the price of milk, and dairy giant Fonterra denies it is creaming profits from the price of milk.
Outgoing Fonterra CEO Andrew Ferrier TV ONE's Q+A that the price New Zealanders pay for milk is "fair".
"I can give an absolute assurance that New Zealanders essentially pay the world price for milk. And the world price for milk gets translated to a price here in New Zealand, so at times of high world prices, you will see New Zealand prices move up," he said.
"In times of lower world prices, you see it go down. It is a fair price, and it's absolutely reflective of the world price."
But the dairy sector's minister says people need answers.
"I think a select committee inquiry could actually delve in. And at the end of the day if they actually demonstrated to New Zealanders a wide variety of pricing at the retail sector for people to buy milk, that could be quite useful," Carter said.
"I think there is a lot more variety at the retail end than people realise and I think that would be an important point for the select committee to try and show to New Zealanders," he said.
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Carter said the cost of milk has risen 9% in the past three years and he will be advocating for a select committee inquiry, but he ruled out a Government subsidy.
Sue Chetwin of Consumer New Zealand says the main issue is the milk price at the farmgate, which "sets the price for everything else down the line" such as the price consumers pay.
Chetwin said "light needs to be shone" on the farmgate price and on "the secret manual" that Fonterra uses to set that price.
But both the minister and Fonterra say lower prices can be found already.
"There are other places where people can buy milk, at the corner dairy, at the service station. I think New Zealanders need to have a look at that," Carter said. "Personally I seldom buy milk at a supermarket because I find I can buy it cheaper elsewhere."
ONE News tested that by shopping for two litres of milk at a dairy, a petrol station and a supermarket.
The milk was $5.20 at a dairy, $3.60 at a Countdown supermarket, and $5.60 at a Shell petrol station. As well being the cheapest, the supermarket had the best range.
Fonterra has frozen the price of milk until the end of the year, giving little away on the future beyond that.
However, Ferrier said he did not see the need for any other inquiry into the price of milk because the Commerce Commission investigation found there was "good solid, robust competition at the retail side."
He said the raw milk price is simply a reflection of the global market, so does not need investigating.
Carter will take his recommendations for a select committee inquiry to the Government caucus on Tuesday. And with the support of the Greens and Labour, the inquiry process could get underway in the select committee as early as Thursday.

lche059

for someone like me who drinks at least 6 litres a week, i agree milk's too expensive these days.

newspaper_44

我觉得整体来说milk对普通消费者还是可以接受的。。。