Fonterra won’t raise local milk prices this year: Ferrier

Fonterra won’t raise price of milk for kiwis this year, Ferrier says

Feb. 18 (BusinessDesk) – Fonterra Cooperative Group says it won’t raise wholesale domestic milk prices this year, even though it expects prices globally have further to go.

Chief executive Andrew Ferrier said New Zealand’s biggest company has absorbed about $10 million of costs in recent months and will absorb further increases through the year. The statement brought a warning of greater global costs in coming years.

“Looking forward global food prices are expected to remain strong,” Ferrier said in a statement. “This is not just an issue for dairy or just an issue for New Zealand. There has been a fundamental change in supply and demand for food internationally which has pushed prices to their current levels.”

“While these prices are good for food exports and the New Zealand economy, New Zealanders are feeling the effects of this in their shopping trolley,” he said.

Milk has been dragged into a debate about the poverty by the relative cheapness of sugar based drinks compared to milk – which is high in protein and calcium.

Ferrier said global milk prices have climbed in recent months. Over the past six globalDairyTrade online auctions of milk powder, average prices have jumped 26%.

Ferrier also plugged the health benefits of milk saying it is “an important part of the diet in New Zealand.”

“We want to ensure that future generations of New Zealanders grow up enjoying it every day,” he said. “It would be great to see retailers getting in behind this commitment for the benefit of New Zealand consumers.

The company has a marketing partnership with Sanitarium, giving the example of two Weet-Bix and milk as a low-cost, nutritious breakfast. The programme is called KickStart Breakfast. It has dispensed 1.5 million free breakfasts in the past two years, the company said.

(BusinessDesk)

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