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Milk prices falling

Milk prices falling

The price of milk and other dairy products is falling and the trend is likely to continue, according to a report released today by Commerce Minister Lianne Dalziel.

The Ministry of Economic Development prepared a report in May on the domestic price of consumer dairy products following concerns at rising domestic milk and dairy product prices.

“The report I am releasing today follows up the work that was undertaken at the request of the previous Consumer Affairs Minister in May. Since then, the prices of consumer dairy products have fallen, and indications are that prices will continue to fall.

“Over the last six months, prices of consumer dairy products have fallen by 2.58% and milk prices have fallen 3.22%. The report indicates that the fall in prices has been in response to falling international commodity prices and some competitive pressures on dairy companies to reduce their prices.

“The Ministry has considered the issue of price trends in this area and has found there is no need for government action.

“There have been concerns that there have been time lags in lower international prices being passed on to New Zealand consumers, but the report states that because of this, New Zealanders can expect prices to continue falling in the current quarter,” Lianne Dalziel said.

Consumer Affairs Minister Judith Tizard welcomed the report’s findings, and promised to keep a close eye on the issue.

“There appears to be a wide range of prices for milk and dairy products in the market which is why I recommend that New Zealand consumers exercise their right to shop around for the best deals,” Judith Tizard said.

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