Fonterra will reduce the wholesale price of milk on the domestic market at the end of this month.
“Fonterra Brands New Zealand has notified retailers that there will be a reduction in wholesale milk price effective January 30. International dairy prices have softened since the highs of earlier last year,” the spokesperson said.
“While they are on the rise again, we would expect to see local prices come down slightly,” the spokeswoman said.
Fonterra said it was ultimately up to retailers to set the price of milk for consumers.
The last sentence is the operative one.
There is a significant variation in price in different outlets which reflects the store mark-up not the wholesale price.
Fonterra can reduce the wholesale price but it’s up to retailers to pass the reduction on to customers.