A No Milk Mondays campaign has been started by a group of mothers and is aimed against what they say is profiteering by Fonterra and retailers.
They have started a No Milk Mondays campaign as a show of consumer power against the dairy manufacturers and retailers. . .
The campaign group says New Zealand families are struggling to afford milk, cheese and butter, which are important for the health of the country.
“The dairy food giants need to realise Kiwis happily pay good prices for their product, but we will not allow them to steal food out of the mouths of our children for the sake of selfish profiteering on the pretext of world markets setting local prices,” it said in a statement.
Selfish profiteering on the pretext of world markets setting local prices? That’s high on emotion and devoid of facts.
World prices have no influence on the difference between the wholesale and retail price but almost everything to do with the price of milk from the manufacturer.
Fonterra and the farmers who supply the company are in business to make money, the more we make from exports the better it is for the country. If the price for domestic supply was lower than the domestic price no-one would bother with the local market.
If anything, domestic prices should attract a premium. Town-supply cows have to be milked all year round while most herds which supply milk for export are dried off at the end of May and don’t start milking again until calving in August.
None of the people calling for us to subsidise consumers when prices are high would be willing to subsidise us when prices are low – not that I’d want them to.
Food prices dropped as a percentage of income, now they’re rising again and as we export so much food that’s good for us all.
The solution isn’t subsidies, regulation or anything else which handicaps producers and manufacturers, it’s a growing economy which will improve incomes.