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Thread ID: 85064 2007-11-28 06:05:00 Shortage of Butter Supply? bk T (215) PC World Chat
Post ID Timestamp Content User
615851 2007-11-29 07:15:00 For heavens sake it was in the newspaper the other day - expect the prices of all goods to rise due to the fuel price increases. zqwerty (97)
615852 2007-11-29 08:43:00 Milk products sell for much more exported than on the domestic market. Any sensible company would sell the same product wherever they get the most money for it.

Somebody is quite right.

Maybe fuel prices do have a minor effect, but the main reason is Fonterra's recent increased payments to dairy farmers for milk fat solids.
And that's because international demand for milk products has boomed. And that has raised our export prices drastically.

So that means we have to pay more for milk on the home market.

Those milk prices went up several weeks ago.
My local paper warned then that butter & cheese & yoghurt etc would rise accordingly.
And that's just what's happened.

No surprises - simply supply & demand economics.
(Just as we can't buy cheap crayfish & cod like someone of my age used to. Now they give us good export dollars instead)

Ironically, it's this dairy product success story which is the country's major source of overseas funds that keeps all that imported computer stuff pretty cheap right now.

Agriculture has been NZ's biggest earner all my life.
Every so often there's been a manufacturing surge in some field or other which has had the pundits predicting farming would go down to second place.
Next it was tourism that would be the winner...
And the vinyards are sprouting...

But the fact remains that our economy still stands or falls on our capacity to grow pasture & raise sheep & cattle more efficiently than most other countries.

City dwellers may not like that image, but the hard cold fact is that farming is still the backbone of the country.
(And we just have to put up with dearer milk & butter & cheese...)
Laura (43)
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