Inquiry now needed for reassurance

The Commerce Commission should proceed with its proposal to investigate the domestic pricing of milk in the New Zealand market, says Labour’s spokesperson for Agriculture Damien O’Connor.

“There is a lot of concern that the increasing international price for milk products is allowing opportunistic profits for the suppliers of milk to New Zealand families,” Damien O’Connor said.

“Fonterra as the major supplier has reassured the public and politicians that stiff competition has kept everyone honest and if you shop around you can save on your costs for milk.

“Farmers have also welcomed the chance to explain to urban consumers that they are not ripping anyone off.

“Given the fact that the Commission has indicated it needs to look at the issue, it would be unfair on all the interested stakeholders and consumers not to follow through with a thorough investigation.

“We hope the dairy industry will continue to lift returns to farmers and New Zealand but they can't be seen to be doing this at the unfair expense of domestic consumers.

“An inquiry is the only way now of providing a transparent deal for everyone,” Damien O’Connor said.