Parliament

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

 

Call for Fonterra to lower domestic dairy prices

12 September 2008

Greens call on Fonterra to lower domestic dairy prices

Today Green Party MP Sue Kedgley has called on Fonterra to reduce the domestic price of cheese and dairy prices, following its admission that international dairy prices have fallen sharply in recent months, and by 38 percent in the past 14 months.

Earlier this year Fonterra justified extraordinary price rises of dairy products in New Zealand by claiming high domestic prices were caused by high export prices, Ms Kedgley says.

"But now export prices are falling, it says New Zealanders cannot expect a similar fall in domestic dairy prices. Earlier this year Fonterra told us domestic dairy prices are set by international prices. Yet when international prices fall, they now claim domestic prices need to remain high.

"This has to be nonsense. Fonterra cannot have it both ways, and claim that domestic prices need to remain high whether export prices are rising or are falling.

"New Zealanders need a better explanation from Fonterra about why domestic prices are so absurdly high."

Ms Kedgley says Fonterra's attempted justification for the continuing high domestic prices - in the face of falling global prices - looks flimsy.

"They claim that lowering international prices won't result in lower domestic prices because they have 'factored in the lower international values' into their price calculations. This doesn't seem plausible to me. I don't believe that - way back in February - Fonterra knew dairy prices were going to fall, as they have in the past few months."

Ms Kedgley says the real problem is that Fonterra is effectively a monopoly in New Zealand, cornering 96 percent of the domestic dairy market.

"What we are seeing is monopoly pricing, and I urge the Commerce Commission to speed up their investigation into Fonterra's domestic price setting practices."


ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Life And Times Of Peter Dunne

In the end, Mr Pragmatic calmly read the signs of impending defeat and went out on his own terms. You could use any number of clichés to describe Peter Dunne’s exit from Parliament.

The unkind might talk of sinking ships, others could be more reminded of a loaded revolver left on the desk by his Cabinet colleagues as they closed the door behind them, now that the polls in Ohariu had confirmed he was no longer of much use to National. More>>

 

Gordon Campbell: On Labour’s Campaign Launch

One of the key motifs of Ardern’s speech was her repeated use of the phrase – “Now, what?” Cleverly, that looks like being Labour’s response to National’s ‘steady as it goes’ warning against not putting the economic ‘gains’ at risk. More>>

ALSO:

Lyndon Hood: Social Welfare, Explained

Speaking as someone who has seen better times and nowadays mostly operates by being really annoying and humiliating to deal with, I have some fellow feeling with the current system, so I’ll take this chance to set a few things straight.. More>>

ALSO:

Deregistered: Independent Board Decision On Family First

The Board considers that Family First has a purpose to promote its own particular views about marriage and the traditional family that cannot be determined to be for the public benefit in a way previously accepted as charitable... More>>

ALSO:

Transport Policies: Nats' New $10.5bn Roads Of National Significance

National is committing to the next generation of Roads of National Significance, National Party Transport Spokesperson Simon Bridges says. More>>

ALSO:

Gordon Campbell: On Why Labour Isn’t Responsible For Barnaby Joyce

As a desperate Turnbull government tries to treat the Barnaby Joyce affair as a Pauline Hanson fever dream – blame it on the foreigners! We’re the victims of the dastardly New Zealand Labour Party! – our own government has chosen to further that narrative, and make itself an accomplice. More>>

ALSO:

Rail: Greens Back Tauranga – Hamilton – Auckland Service

The Green Party today announced that it will trial a passenger rail service between Auckland, Hamilton and Tauranga starting in 2019, when it is in government. More>>

ALSO:

Housing: Voluntary Rental Warrant Of Fitness For Wellington

Wellington City Council is partnering with the University of Otago, Wellington, to launch a voluntary Rental Warrant of Fitness for minimum housing standards in Wellington, Mayor Justin Lester has announced. More>>

ALSO:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election