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The country's two supermarket chains are tonight not promising to follow Fonterra's lead on holding milk prices.
Under fire in the past week for the price of its milk, Fonterra announced yesterday afternoon it will freeze domestic milk prices for the rest of the year.
Recent increases have pushed the price of two litres of milk up 45 cents to $3.63 in just over a year.
The question now is - will shelf prices reflect Fonterra's freeze?
"It's a reasonable expectation of retailers - if we don't move prices that they don't," said Fonterra's Peter McClure.
However, the two big supermarket chains - Foodstuffs and Progressive Enterprises - will not promise to hold prices along with Fonterra.
However, both companies issued short statement on the issue.
Progressives, which owns Foodtown, Woolworths, and Countdown, said "if (the supermarket's) costs don't go up, shelf prices won't change."
Foodstuffs - which owns Foursquare, New World and Pak 'n' Save - said the price freeze will be reflected in the price of Fonterra products in the store.
"I would think the supermarkets could probably look at actually trying to hold the price (as) probably outside the raw milk price there aren't a lot of other price pressures," said David Naulls of Consumer New Zealand.
Agriculture minister David Carter said supermarket price increases will surprise him.
"In view of the gesture by Fonterra, they'd need to watch their public relations very carefully if they decided to now increase the price of milk," he said.
Unimpressed
Meanwhile, Federated Farmers is not impressed at Fonterra's move, saying that the country's largest company appears to have bowed to public pressure over the issue.
And while it may be good news for consumers, Federated Farmers dairy spokesperson Lachlan McKenzie said spare a thought for the 10,000 farmer-shareholders in Fonterra who will end up footing the bill.
McKenzie said some serious questions need to be asked as to why the supermarkets have not come under the same pressure as Fonterra.
What are you paying for milk and do you think supermarkets ought to follow in Fonterra's footsteps? Have your say on the messageboard below.
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Add a Comment:
Post new commentjeremyhobbs21@hotmail.com said on 2011-02-21 @ 18:49 NZDT: Report abusive post
For the record, teapeople, history has taught as that practically every dictatorship has lead to corruption. So no, I'm not particularly for that idea. I do love however the "people" not having a voice. Most people vote for what betters themselves, not the everyone else. Winston Churchill once said "The best argument against democracy is a 5min conversation with the average voter". It is so true it bring a tear to my eye.
jeremyhobbs21@hotmail.com said on 2011-02-21 @ 18:46 NZDT: Report abusive post
Economics isn't ethical mate otherwise everything would be free, wouldn't it now. What bothers me is that people complain about how the system today works without realising that everything you enjoy in this life, everything you take for granted (computers, cars, availability and selection of food at your disposal 24/7) is the very system you are complaining about. I know economics is rough mate but it built the very society you take for granted. That is why I've been calling people hypocrites.
John Morrison said on 2011-02-20 @ 08:52 NZDT: Report abusive post
I
V in UK said on 2011-02-20 @ 04:36 NZDT: Report abusive post
We have been in the UK for 13 years. We pay
missrat said on 2011-02-19 @ 21:57 NZDT: Report abusive post
I am in Australia & Coles & Woolworths are selling milk for $1 per litre. While we think this is OK as we use about 4 or more litres a day in our house, just how much is the poor farmer getting ? Same goes for NZ dairy farmers, as overheads are enormous. But in saying that, NZ prices are too much for average family. I am a NZ'r and remember way back when dairy products were subsidised & milk was free in schools.