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Willy Leferink - Source: Breakfast -
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Federated Farmers says it is tired of farmers being blamed for high milk prices in supermarkets.
The association's dairy chairperson, Willy Leferink told TV ONE's Breakfast that it called for a price war in supermarkets because farmers' margins have been squeezed enough.
"Last year we had the inquiry on milk and I think the finger was wrongly pointed at the farmers at the time," he said.
"Our prices are related to the prices of milk overseas, you know if farmers really want to be all out, we would send milk overseas because we get more money for it."
Leferink said Nosh's move to drop milk price is just a good move by the small supermarket chain to get customers by using milk as a loss leader.
Nosh Food Market reduced the price of its Cow and Gate milk earlier this week to $1 a litre, which is more than a 50% reduction, and said it will hold the price there until the end of the month.
Foodstuffs has said it would not be following Nosh's lead, and Countdown's owner Progressive also said it has no plans to adjust prices.
Leferink said changing the price of milk in supermarkets does not have to be a permanent decision.
"They can't make a living making a loss forever and a day, the supermarket could at some stage review their position", Leferink told Breakfast.
He said the margin farmers make on milk per litre is still far below a dollar and it is up to supermarkets to lower the prices.
