Dairy Prices Tipped to Remain High
NEW ZEALAND - Soaring prices for butter, cheese and milk may stabilise in the next few months, but do not expect them to fall, industry leaders say.
5 February 2008
1 minute read
A standard 500g container of butter is now selling for up to $4.99 in supermarkets, up from about $2.50 in September last year. A 1kg block of cheese can cost up to $15, and a litre of milk is up to $2.40.
The rapidly expanding middle classes in the booming Chinese and Indian economies have been cited as the main cause of unprecedented demand for dairy products worldwide, roughly doubling prices in the past year.
That is a boon for New Zealand dairy farmers but is hitting consumers in the pocket.
Last year, butter prices rose by 66.7 per cent, cheese went up 37% and milk 16%, according to Statistics New Zealand.
Christchurch City Missioner Michael Gorman said yesterday that the dairy-price surge was hurting many people on low and fixed incomes.
