Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

End of Yoghurt Competition Would Hurt Consumers

Wednesday 13 Mar 2002

If genuine competition practically disappears in New Zealand's yoghurt market the Minister Jim Sutton should be held to account, says ACT commerce spokesman, Stephen Franks.

"Fonterra could have effective control over yoghurt prices, if Fonterra's subsidiary New Zealand Dairy Foods (NZDF) is sold to Australia's National Foods Limited.

"National Foods is currently 18.2% owned by Fonterra. If the Commerce Commission allows National Foods to acquire NZDF, it would make a mockery of section 9 of last year's Dairy Restructuring Act, which requires the sale. The sole purpose of the sale is to ensure genuine competition with Fonterra in New Zealand.

"The Government should have used its statutory power to express a policy view to the Commerce Commission to make it clear that this application should not have been entertained.

"Currently, the yoghurt market is predominantly split between three major brands. NZDF's Fresh 'n' Fruity brand makes up about 60% of the yoghurt market. National Foods' Yoplait brand makes up about 20% of the yoghurt market. The remainder is made up of Mainland's Meadow Fresh brand, which is also effectively owned by Fonterra, and a few niche brands in the health yoghurt area.

"If National Foods buys NZDF, it would hold about an 80% share of the yoghurt market. Its stable mate Mainland has most of the balance, so the implications are clear.

"Such dominance would substantially lessen competition. National Foods' massive market power would be a poor outcome for consumers and undermine the integrity of our competition laws," Stephen Franks said.

Ends


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Zimbabwe: New Democracy, Or A False Dawn?

Gordon Campbell: Robert Mugabe = Hosni Mubarak. The current jubilation on the streets of Harare at the fall of Zimbabwe’s dictator Robert Mugabe is genuine, and one hates to be negative about the country’s future. Yet the situation is eerily similar to the scenes in Cairo in early 2011, when a popular uprising swept Hosni Mubarak from power in Egypt. More>>

 

Gordon Campbell: On The New Pike River Agency (And The Air Strike Wing)

Much of the sympathy the public still feels for the families of the Pike River miners has been sustained by the sense that the previous government – let alone the mining company and the processes of receivership and litigation – has never dealt honestly, or fairly, with them. More>>

ALSO:

Not Going Swimmingly: Contractor Cut, New Dates For Christchurch Sports Centre

“As an incoming Minister, I have been conducting a thorough review of progress on the Anchor projects and to learn of a $75 million budget blowout on this project was very disappointing..." More>>

ALSO:

Tertiary: Allowances, Loan Living Costs To Get Boost

“From 1 January, student allowance base rates and the maximum amount students can borrow for living costs will rise by a net $50 a week,” says Education Minister Chris Hipkins... further adjusted from 1 April 2018 in line with any increase in the CPI. More>>

ALSO:

Foreign Affairs: Patrick Gower Interviews Jacinda Ardern

Prime Minister Jacinda Ardern says discussions have already begun on how to bring climate change refugees into New Zealand under a Pacific seasonal employment plan... More>>

ALSO:

Gordon Campbell: On The Centre Right’s Love Of ‘Nanny State’

You’d almost think it was 2005 again. That was a time when the rugged individualists of the centre-right were being beset by government regulations on the nature of light-bulbs, the size of shower heads, the junk food available at school tuck shops and other such essentials... More>>

Speaking Of Transport: Public Engagement On Wellington Scenarios

“Our work on possible solutions for Wellington’s transport future is ongoing, but has progressed to the stage where we’re ready to share our ideas with the public and seek their feedback to help guide our next steps...” More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election