SUPERMARKETS MILKING KIWIS

Federated Farmers is reportedly asking Kiwi’s to stop buying milk at the supermarket and instead head to the local dairy. Federated Farmers dairy chairman Chris Lewis stated that when purchasing milk for his family, he heads instead to the dairy where he can buy two 2-litre bottles for just $6.

University of Auckland marketing professor, Bodo Lang criticised New Zealand’s milk prices as being “astoundingly high.”

A spokesperson for Foodstuffs said in a statement that the supermarket price takes into account the wholesale cost from suppliers which can change depending on prices on the global market.

"Then we add our own costs, which include but are not limited to wages, salaries, transport, refrigeration and taxes. We aim to be competitive and try to ensure this fridge staple is as affordable as possible for New Zealand households.”

Currently, New Zealand milk prices range from $3.50 to $6.80 at leading supermarket chains.

The price of milk at retailers depends on a large range of factors some of which can be; population size, economies of scale, production methods, welfare, tariffs, wages, GST and exchange rates.

Federated Farmers is a New Zealand organisation that lobbies on behalf of its members, who are primarily dairy farmers. The group currently has over 26,000 members across the country.