Tararua and Meadowfresh Milk Price Decrease

MEDIA RELEASE Tuesday 5th November 2002

Tararua and Meadowfresh Milk Price Decrease

The wholesale price for Tararua and Meadowfresh milk will reduce by approximately 6% from December 2.

Mainland Products Ltd CEO Geoff Norgate said today that while his company did not control retail prices he would expect to see a reduction in the shelf price of Tararua and Meadowfresh milk of approximately 10c per litre.

He said supermarket brands such as Signature, Basics and Pams, controlled by the large retail groups, took the lead earlier in September when they lowered milk prices throughout their chains nationally. Now branded milk was following suit.

“Supermarkets have a broader range of products and therefore a better ability to protect their profitability than most other businesses,” said Mr Norgate. “Because of this they were able to take a lead role in lowering the price of milk to consumers. It is unlikely that the supermarket brands would fall further.”

Mr Norgate said while the worldwide demand for New Zealand sourced dairy products continued to be strong, a slowing global economy had had an impact on export prices over the past nine months. This would have a flow on effect in the payout to New Zealand farmers and consequently would reduce the cost of the milk that Mainland buys.

“For the New Zealand economy this situation is not that ideal, even though Fonterra’s forecasted payout for farmers is still respectable when compared with a few years ago. However, the downside for farmers becomes an upside for New Zealand milk drinkers. We are pleased that we are able to pass on the benefit of this cost reduction to our customers and ultimately consumers,” Mr Norgate said.

Other Dairy products such as cheese and butter are under review, and there are likely to be downward movements in prices early in the new year.

Tararua is sold in the North Island and Meadowfresh in the South Island.

ENDS

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