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MILK

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Lovelee
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« on: February 17, 2011, 02:47:30 am »

The country's biggest supplier is warning milk prices are about to go higher, and medical experts fear the cost of a daily glass is already out of reach for some.

Dairy giant Fonterra today warned supermarket prices could surge further following the sixth consecutive rise in prices on its online globalDairyTrade auction this morning.

The average 3.9 per cent rise, to US$4540 per tonne, in the twice monthly online auction, means the overseas prices that dictate what the Kiwi shopper pays for a bottle of milk are likely to stay high for some time, prompting Fonterra chief executive Andrew Ferrier to call it "the new normal".

Today at Countdown, Anchor-branded milk cost $4.80 for a 2-litre bottle. In June 2009 in was $3.94 for the same amount.

By comparison, the same supermarket has a 2-litre bottle of Coca-Cola for $3.99 and a 2.25-litre bottle of Coca-Cola for $3.57 (currently $2.79 on special).

Medical Officer of Health for the Waikato District Health Board, Felicity Dumble, said it was a concern when milk was dearer than soft drinks.

"One of the great things about milk is it considered to be a `complete' food, with a wide range of nutrients essential for growth," she said. "If the price makes milk prohibitive for families then not only are they missing out on benefits of milk itself, but they may turn to cheaper but less healthy options."

Ms Dumble said when healthy basics became too expensive it exacerbated problems that led to malnutrition or even obesity.

Scott and Sharlene Woolston, of Tamahere, said their four boys drink a total of about six litres of milk each week, either cold, on cereal or in drinks.

"Milk is definitely really expensive – that's why we always buy the cheap brands – there's quite a noticeable difference in the prices," Mr Woolston said.

He said they had never had to go without milk, but the boys did tend to drink a lot of water "out of habit".

Fairfield Bridge Dairy charges $3.40 for a 2-litre bottle of Dairy Dale standard milk or $6.40 for two 2-litre bottles. Anchor milk costs $5.20 for 2-litres.Dairy owner Nikki Kaur said they kept milk prices as low as they could, but they had to put the prices up recently.

"We make very little profit from milk or bread," she said.

Fonterra globalDairyTrade manager Paul Grave, said the latest dairy figures showed overseas demand for New Zealand milk was firming.

"Higher dairy prices will flow through to domestic prices at some point," Mr Grave said.

But some of those producing the milk were concerned about what it cost at the local shops.

Liam Whaley, a sharemilker on a Ngatea dairy farm, said it was unfortunate Fonterra – which exported 95 per cent of the milk it collected – sold the rest within New Zealand for the same price it would fetch on the international market.

"We sell our milk for about 80 cents a litre to Fonterra. They have got to transport it, process it, package it, market it and distribute it. Somehow along the line it goes to $2.40 a litre. I certainly think they could go a little easier."

Tim Drysdale, a dairy farmer from Tokoroa, said he and his wife Wendy had to buy milk too and found it expensive, but it wasn't up to dairy farmers to prop up those who couldn't afford milk.

"If we (Fonterra) were taking any less for it, we would be subsidising the local economy," Mr Drysdale said.

Fonterra Brands Ltd managing director, Peter McClure, said prices had risen so quickly they had not been factored into pricing.

"We are unable to push it all through," Mr McClure said.

"In effect we are subsidising the domestic market now."

Fonterra is to review its forecast payout to farmers, now sitting at $7.25 per kg of milksolids, next week

http://www.stuff.co.nz/waikato-times/news/4664215/Milks-on-the-luxury-list
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Magoo
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« Reply #1 on: February 17, 2011, 06:24:51 am »

Quote
Tim Drysdale, a dairy farmer from Tokoroa, said he and his wife Wendy had to buy milk too and found it expensive, but it wasn't up to dairy farmers to prop up those who couldn't afford milk.

"If we (Fonterra) were taking any less for it, we would be subsidising the local economy," Mr Drysdale said.
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« Reply #2 on: February 17, 2011, 01:07:49 pm »

If you have the recommended amount per day the cost per week for a family can really add up. 2 cups per child, 3 cups per teenager, 2 cups per adult per day.

However I think that the fly in the supply chain isn't the farmers or the dairy factory.

It is the supermarket/retailer.

That situation isn't going to change unless shoppers vote with their feet - if the supermarket is out of the cheaper brand milk don't buy the dearer stuff. Go elsewhere.

I am currently buying most of my milk at a Green Groscer cum Chinese supermarket where I am still paying around $3.50 per 2 litres of Cow and Gate Trim Milk.

My local Dairy wants $5.50 for Anchor Trim
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Lovelee
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« Reply #3 on: February 17, 2011, 02:14:49 pm »

Ive been meaning to look at the real cost of living for a family of 5 ..

what the pundits say ..

5 fruit and vege .. but thats really 400gm each person a day .. which = umm 14 kilos for the week!!!  (hows my maths??)

I would say the milk is 500ml??  there abouts .. thats 70L!!  is that right???

Umm meat ..

Hang on .. where is Mum gonna get the money for her tampons this month???
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« Reply #4 on: February 18, 2011, 07:00:29 am »

I buy 24 litres per week.
 Yes that is more than the recommended amount for  2 adults, 2 teens and 1 child but not by much. That is only 3 litres extra, some of that gets used in cooking but I suspect my 10 year old drinks the rest.

At more than $40 per week - that is a sixth of my grocery and food budget.

I buy 1kg of cheese and 1kg of yogurt as well per week. Yes, we like our dairyfood.



Milk price: Minister demands answers
ANDREA FOX Last updated 05:00 18/02/2011

Public anger at the fast-rising price of milk and other dairy products has led Agriculture Minister David Carter to seek a special report from his officials and dairy giant Fonterra to revisit its sums.

Mr Carter wanted to be assured there were no cosy "arrangements" and that legislation designed to rein in Fonterra's domestic market power was working.

Peter McClure, managing director of Fonterra's New Zealand operations, Fonterra Brands, said he would be "uncomfortable if prices moved up much more". But he might be forced to raise them if export returns remained strong.

Mr McClure said milk represented "incredibly good value" – a two-litre bottle could still be cheaper than a cup of coffee – but Fonterra did not want to make milk unaffordable.

"That's not in our long-term interests. We want to do everything possible to keep our costs down. When consumers make as much noise as they are, it forces us to take a very close look. We are looking at one or two options but I don't want to signal competitors."

Mr McClure said Fonterra Brands had not passed on the full cost of soaring commodity prices.

It could be a "prudent" time for it to start market research on the rising price and consumer resistance, after a "dramatic" fall in sales in the past three months.
http://www.stuff.co.nz/business/farming/4672810/Milk-price-Minister-demands-answers
 
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k1w14ever
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« Reply #5 on: February 18, 2011, 07:33:28 am »

2 litres of milk here has dropped to $2:00(in my area). Coles has decided to drop it for good as it is needed more than fizzy.

I remember when it was 2cents for 600ml bottles. 

Milk no longer tastes like it did when i was a kid, the costs goes up because they put more crap in it.  God forbid we have anything natural now.
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« Reply #6 on: February 18, 2011, 07:44:44 am »

I dont know about that Kiwi .. I understand that milk has no additives .. that our tastes change over the years.
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Calliope
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« Reply #7 on: February 18, 2011, 07:49:23 am »

I only buy full cream milk - anything else has either had fats removed, water added, calcium added or whatever they think should be added. Ideally we should all own a "house cow" and then we could have our own milk, cream, and make cheese.
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Lovelee
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« Reply #8 on: February 18, 2011, 04:19:56 pm »

Dairy giant Fonterra says it will freeze the price at which it sells milk to supermarkets and retailers for the rest of the year to give Kiwi shoppers relief.

This means that if milk and other dairy product prices increase in supermarkets and shops from now on, it will be retailers pocketing the rises, not Fonterra.

All raw milk for processing into retail milk and other domestic market dairy products comes from Fonterra, the country's biggest company and world's leading dairy exporter.

The announcement is a response to growing consumer anger at the price of milk and the prospect of another round of rises next month.

Domestic raw milk prices are dictated by what Fonterra gets for milk products overseas. International dairy prices have risen more than 26 per cent in the past six global online auctions run by Fonterra.

A two litre bottle of branded milk has risen 15c in recent months, while cheese prices have gone up 46 per cent and butter 153 per cent in the year to the end of December.

Agriculture Minister David Carter yesterday called for a special report from officials on the domestic market situation and the number of processors producing for the domestic market.

Fonterra Brands New Zealand, the retail arm of the farmer-owned cooperative, says it has only passed on 1.4 per cent of the 26 per cent rise in global prices.

Chief executive Andrew Ferrier says it has absorbed around $10 million of increased costs and any further increases during the year will also be carried by the company.

"We recognise milk is an important part of the diet in New Zealand and we want to ensure future generations of New Zealanders grow up enjoying it every day," Ferrier says.

"It would be great to see retailers getting in behind this commitment for the benefit of New Zealand consumers."

http://www.stuff.co.nz/business/farming/4676611/Fonterra-freezes-milk-prices
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AnFaolchudubh
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« Reply #9 on: February 18, 2011, 04:59:57 pm »

Ideally we should all own a "house cow" and then we could have our own milk, cream, and make cheese.

You'll need more than just a cow.
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R. S. OhAllmurain
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« Reply #10 on: February 18, 2011, 06:53:59 pm »


Fonterra freezes price of milk
Updated 7:40 PM Friday Feb 18, 2011
 
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10707233

Ideally we should all own a "house cow" and then we could have our own milk, cream, and make cheese.

You'll need more than just a cow.

Bullsh.  Lactation can be initiated and maintained indefinitely
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AnFaolchudubh
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« Reply #11 on: February 18, 2011, 07:09:15 pm »


Fonterra freezes price of milk
Updated 7:40 PM Friday Feb 18, 2011
 
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10707233

Ideally we should all own a "house cow" and then we could have our own milk, cream, and make cheese.

You'll need more than just a cow.

Bullsh.  Lactation can be initiated and maintained indefinitely

You speaking from experience?
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Stupid people are not an endangered species so why are we protecting them
R. S. OhAllmurain
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« Reply #12 on: February 18, 2011, 07:13:09 pm »


Fonterra freezes price of milk
Updated 7:40 PM Friday Feb 18, 2011
 
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10707233

Ideally we should all own a "house cow" and then we could have our own milk, cream, and make cheese.

You'll need more than just a cow.

Bullsh.  Lactation can be initiated and maintained indefinitely

You speaking from experience?

 With a neighbour's cow, and a DOG, not bitch, that I once owned, back in the dimdarks

I ain't joking.
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« Reply #13 on: February 18, 2011, 08:39:42 pm »


BTW,  China on alert for leather protein in milk supply
(AP) – 5 hours ago

http://www.google.com/hostednews/ap/article/ALeqM5j0e-HWmR3eVzrkhHz8ZG6PRfVL5Q?docId=161fccd8368b476c9ffec82200fbfea2
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Kiwithrottlejockey
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« Reply #14 on: February 18, 2011, 11:53:37 pm »


The Nats government has the power to reduce the price of milk by 15% at the drop-of-a-hat.




When the Nats were in opposition and the price of petrol last surged above $2 per litre, the Nats were trying to make political capital out of the situation by demanding that the then Labour government reduce the amount of excise tax they took from petrol in order to ease the price for consumers. And now, not only has the price of milk gone through the roof, but petrol is back above $2 per litre.

So....now that the Nats ARE the government, why don't they put their money where their mouth is and do what they were advocating the last government should have been doing, with both milk and petrol? Or were the Nats full-of-shit back then?  Roll Eyes
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« Reply #15 on: February 19, 2011, 07:56:46 am »

Why don't you take it to the horses mouth and send the body of that post to John Key and your local MP?
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Kiwithrottlejockey
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« Reply #16 on: February 19, 2011, 09:33:25 am »


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Lovelee
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« Reply #17 on: February 19, 2011, 12:00:15 pm »

thats not even funny
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Laughter is the best medicine, unless you've got a really nasty case of syphilis, in which case penicillin is your best bet.
Newtown-Fella
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« Reply #18 on: February 19, 2011, 01:45:30 pm »

Farmers cry foul over milk price freeze

Federated Farmers is crying foul over Fonterra's decision to freeze wholesale milk prices for the rest of the year.

The dairy giant made the decision after a week of public scrutiny at how much the price of milk is hitting consumers in the pocket.

But Federated Farmers dairy spokesperson Lachlan McKenzie says the news that farmer-shareholders would foot the bill came as a surprise to him.

"We seem to now have a desire for a small sector of 10,000 people to subsidise food for the other 4.5 million people" he told Newstalk ZB.
Mr McKenzie says some serious questions need to be asked as to why the supermarkets haven't had the same pressure.

http://nz.news.yahoo.com/a/-/top-stories/8870964/farmers-cry-foul-over-milk-price-freeze/

well of course the Farmers will cry foul over this as they stand to loose money in their annual dividends ...

guess there wont be many buying BMW's taking overseas holidays etc etc ...

oh dear so sad ....... NOT !!
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« Reply #19 on: February 19, 2011, 02:06:46 pm »

I can see quite where the farmers are coming from - they get about 60c from the cost of a litre for the milk .. Fonterra have made this statement without asking their shareholders. It would be interesting to know what the supermarkets & dairys pay for it wholesale .. to see where the price guts out.
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Laughter is the best medicine, unless you've got a really nasty case of syphilis, in which case penicillin is your best bet.
dragontamer
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« Reply #20 on: February 19, 2011, 02:43:58 pm »

The local dairy just switched brands and the owner of the dairy told me that they were 'allowed' to sell the Cow & Gate at 2 for $6.30.  I questioned that and he said that the supplier sets the minimum price he is allowed to sell the milk at.  He had to contact them and arrange for the light blue Branded name one to be available at the lower Cow & Gate price (they only had green and dark blue).
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« Reply #21 on: February 19, 2011, 02:52:47 pm »

Is Cow & Gate milk from Fonterra?  I thought that was from the other milk supply company.
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Newtown-Fella
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« Reply #22 on: February 19, 2011, 03:08:18 pm »

wait till the 2 supermarket chains in NZ start selling it for $1 a lire just as they have been in aussie .....

http://www.dailytelegraph.com.au/business/supermarket-milk-war-turns-sour-after-woolworths-pledges-cash-to-dairy-farmers/story-e6frez7r-1226003358855

the farmers got $6.10 per kilogram of milk solids [ http://www.nbr.co.nz/article/fonterra-payout-boost-adds-millions-economy-122115 ] last year

 the average dairy farm produces about 137,000 kilograms of milk solids per year [ http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aak9FbfA6y6w ] some $835700 !!!

wheres the problem ?

im sure the farmers will still get paid for total milk solids produced

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« Reply #23 on: February 19, 2011, 03:15:47 pm »

.. they wont get what they expected for their shares - Im sure they will let Fonterra know how they feel.

You can buy milk here for a $1 litre .. in Northland .. might have risen by now, but it came in a plastic bag.  Was real popular.
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Laughter is the best medicine, unless you've got a really nasty case of syphilis, in which case penicillin is your best bet.
Newtown-Fella
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« Reply #24 on: February 19, 2011, 03:17:49 pm »

Is Cow & Gate milk from Fonterra?  I thought that was from the other milk supply company.

Fonterra do Anchor

Cow and Gate i think is Independent Dairy Producers part of Goodman Fielder Group
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