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Thread ID: 82502	2007-08-29 10:44:00	Price of Milk	Whenu (9358)	PC World Chat

Post ID	Timestamp	Content	User
585976	2007-08-29 19:48:00	Thats what I always thought, if the overseas want more, then they can pay for it, not us. Another backwards world moment....	rob_on_guitar (4196)
585977	2007-08-29 19:57:00	I thought you moved back here so you could spell beer with 2 'e's rather than 4 'x's :p I remember the last time Fonterra blamed the drought in OZ which lead to a decreased overseas supply, so therefore demand for NZ milk had risen substantially. I still don't understand why that pushes local prices up, it should just push up export prices Read Laura's post for explanation.	Cicero (40)
585978	2007-08-29 20:35:00	Dont get me started on meat! hahaha Yes lets. Since moving down to farm country, I've noticed: Power costs more Rates cost more (proportionally considering the CV of my house) Meat costs more I miss the Aussie Butcher.	pctek (84)
585979	2007-08-29 20:42:00	It actually goes a lot deeper than Laura's post. Up until now, Dairy Farming for a lot (not all) was not a happy industry and farmers in some of the established areas were cashing up shares and quitting, for other farming activities, which, I understand was of concern to Fonterra. It looked like no light at the end of the tunnel. Suddenly the dairy industry faces the happy prospect of increased prices and from what I understand this is brought about for a number of reasons; the drought in OZ (although Fonterra has a big presence there and their operations would have been effected - I suspect), rising demand from the new big economies such as China and the price of oil, which has encouraged the diversion of grain from feed lots to bio-fuel production. The price of food is expected to increase dramatically and it is realised that there is a world wide shortage of good farmland (they aint making any more of it). Michael Murphy, the Irish farming guru is reported as saying that the scenario we're going into is positive for the true pastoral countries such as Ireland, New Zealand and the west of England (damp, mild conditions) for perhaps 10 years, time will tell on that one. I've seen predictions like that made before in the last 25 years and generally an upward swing is only good for a season or 2. This will be positive for NZ and the provincial areas should start to feel the benefits in about 6 months to a year and Auckland 18 months later - well this is the way it usually goes.	jcr1 (893)
585980	2007-08-29 21:13:00	Read Laura's post for explanation. So when the price of oil goes up the Arabs pay more at the pump?? I don't think so.. So why here in NZ does the price go up when the price in say Europe goes up.	paulw (1826)
585981	2007-08-29 21:45:00	So when the price of oil goes up the Arabs pay more at the pump?? I don't think so.. So why here in NZ does the price go up when the price in say Europe goes up. NZ a democracy,Arabs largely autocratic. Here the market rules,there the sheiks rule,so don't steal,or you will loose a hand.	Cicero (40)
585982	2007-08-29 21:50:00	This doesn't answer the question that began this thread, but I was startled to hear on National Radio yesterday that Fonterra is the largest exporter of United States dairy products. Multinational companies do not usually have much loyalty to their country of origin - their sole loyalty is to their shareholders, so they take their profits where they can get them. If their profits are high, the managing directors can screw the company for bigger salaries. Like Laura says, it happens with all commodities where there are high overseas prices. Why would the company sell at a lower price "at home" and lower their profits? They would simply push more of their product on to overseas markets and neglect "home" consumers if the profits were lower here. The only way to prevent that would be for the gumberment to legislate, and judging by posts on other topics, not many members of PressF1 want the gumberment to interfere in the market place...	John H (8)
585983	2007-08-29 22:00:00	This doesn't answer the question that began this thread, but I was startled to hear on National Radio yesterday that Fonterra is the largest exporter of United States dairy products Thats right, the largest international dairy traders. What's not re-invested comes back to NZ.	jcr1 (893)
585984	2007-08-29 22:20:00	Laura is quite correct with the explanation but it still comes back to greed on the part of the company. The flaw in that argument (from the companies perspective, not Lauras) is that we don't earn foreign currency so our buying power hasn't changed and secondly we don't see the price fall when the foreign exchange rate moves in our favour. Lastly, Fonterra export approximately 98% of the milk solids produced in this country. So not increasing the local price would be quite literally a drop in the (milk) pale. It is downright greed. From a macro perspective the milk price being more expensive than petrol is not logical. Andrew	andrew93 (249)
585985	2007-08-29 22:28:00	There is no excuse for milk to be priced that high! It is greed, greed of the little shop owner, I bet coffee is $7 and bread $4 . 50 GRRRRR :mad: We own a small beachside shop, we are 80ks from the nearest supermarket . We sell milk, 2l for $4 . If you look at the branding, you will probably find its the cheaper brand and they are ripping you off! Id be back there getting up their arse!	Lovelee (6586)
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