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Milk in New Zealand is traded internationally. From what I gather, countries that New Zealand exports milk to are willing to pay a higher price than what they g
by benburton 14y ago
Milk in New Zealand is traded internationally. From what I gather, countries that New Zealand exports milk to are willing to pay a higher price than what they get selling it back home.
Note: These are just some vague memories when I drunkenly discussed the problem with some Fonterra execs.
- archangel_one 14y agoI've heard a similar thing - that explains why we pay an apparently high price in NZ, but it doesn't explain to me why it's significantly cheaper in the UK. I can't see why the price here doesn't raise to this alleged international price as well.
- sitharus 14y agoIn most countries milk production is heavily subsidised or price controlled as it produces measurable health benefits to children. In New Zealand this is not the case - farmers don't get direct subsidies, though they do have a novel tax system around stock management. Even with this they can produce milk significantly cheaper than we pay, but Fonterra's essentially a monopoly and isn't strongly regulated, so we end up paying a lot more than other countries.