Fonterra is being warned its reputation is being harmed by skyrocketing prices for dairy products.
New Zealand First economic development spokesman Doug Woolerton says Fonterra is imposing international prices on the local market at a time when families are struggling to buy food.
He is calling on Fonterra to smooth prices for local consumers.
Woolerton says it is not a good look for New Zealand when Kiwis can't afford to buy locally produced food. He says it is sad to see some Australian cheese is cheaper than locally produced ones, especially given the high cost of freight.
But Fonterra says they are trying to keep cost down because setting up a slicing and packaging facility here would require a huge capital investment.
The NZ First comments come as Fonterra is set to announce its milk solid payout to farmers on Friday.
It is expected that the final payout to dairy farmers will be at least 30 cents per kilo higher than expected.
This would take the rate from $7.30 to $7.60 a kg - a big increase on last year's payout of $4.46.
But farmers may not actually see all the cash from the payout, with Fonterra saying it may keep some back to weather an international economic downturn.
Meanwhile, more than 80% of Fonterra's largest commodity whole-milk powder customers have signed up as registered users online trading platform of globalDairyTrade.
In April Fonterra announced plans for the platform in response to change in the market place which has seen a lot more price volatility.
The platform is expected to go online in six weeks.
