Whole­sale milk cost frozen

Matamata Chronicle - - Rural Delivery -

Fon­terra has an­nounced that its Fon­terra Brands New Zealand busi­ness will freeze whole­sale do­mes­tic milk prices for the rest of 2011.

Chief ex­ec­u­tive Andrew Fer­rier said in­ter­na­tional milk prices had risen steadily over re­cent months.

The com­pany had al­ready ab­sorbed around $10 mil­lion of in­creased costs and with this com­mit­ment any fur­ther in­creases dur­ing the year will also be ab­sorbed.

‘‘We have seen world dairy prices go up by more than 26 per cent in the last six glob­alDairyTrade events. While these in­creases have had a big im­pact on raw ma­te­rial costs for Fon­terra Brands, we have only passed on an av­er­age in­crease of 1.4 per cent to our re­tail cus­tomers who ul­ti­mately set the price paid by New Zealan­ders.

‘‘Look­ing for­ward global food prices are ex­pected to re­main strong. This is not just an is­sue for dairy or just an is­sue for New Zealand. There has been a fun­da­men­tal change in sup­ply and de­mand for food in­ter­na­tion­ally which has pushed prices to their cur­rent lev­els.

‘‘While these prices are good for food ex­ports and the New Zealand econ­omy, New Zealan­ders are feel­ing the ef­fects of this in their shop­ping trol­ley.

‘‘We recog­nise milk is an im­por­tant part of the diet in New Zealand and we want to en­sure that fu­ture gen­er­a­tions of New Zealan­ders grow up en­joy­ing it ev­ery day. It would be great to see re­tail­ers get­ting in be­hind this com­mit­ment for the ben­e­fit of New Zealand con­sumers.

Com­pany man­ag­ing di­rec­tor Peter McClure said global price in­creases would con­tinue to im­pact the price that dairy man­u­fac­tur­ers like them­selves paid.

‘‘How­ever, we want milk to re­main an ev­ery­day part of the Kiwi diet so we’ve made a com­mit­ment to ab­sorb any ex­tra costs for the rest of the year,’’ he said.

Mr McClure said al­though prices were high, drink­ing milk on a daily ba­sis had real nu­tri­tional ben­e­fits and milk was still good value for money when it came to get- ting daily nu­tri­tion in­take.

‘‘Just 50 cents will buy you a break­fast of two Weet-Bix and milk. Through our Kick­Start Break­fast pro­gramme, with San­i­tar­ium, we see the real ben­e­fits a nu­tri­tious break­fast pro­vides school chil­dren.

Since the pro­gramme started two years ago we have pro­vided more than 1.5 mil­lion free break­fasts, not only giv­ing chil­dren a nu­tri­tious start to the day but hav­ing a pos­i­tive im­pact on their per­for­mance.

‘‘A glass of milk will give a child around a third of their daily pro­tein and cal­cium in­take and up to two thirds of some vi­ta­min re­quire­ments, which is more nu­tri­tion for a much lower price than most fruit, veg­eta­bles and meat,’’ he said.

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