Shortly after announcing its decision to provide free milk to schools in the Northland region, dairy company Fonterra has announced it will lower the wholesale price of milk next month.

While the company has been at pains to claim high New Zealand retail milk prices are a consequence of high international milk prices, not the lack of competition in the domestic dairy market, the anger of New Zealand consumers is obviously influencing its thinking. However, the farmer co-operative claims that declining international dairy prices are behind the impending change.

In February last year Fonterra froze the wholesale price of milk in New Zealand. While international dairy prices are now higher than they were a year ago, and Fonterra is promising its farmers even higher returns this coming season, the company is claiming international dairy prices are the reason for its back down.

“Fonterra Brands New Zealand has notified retailers that there will be a reduction in wholesale milk price effective January 30. International dairy prices have softened since the highs of earlier last year,” a Fonterra  spokesperson said in announcing the price change.

Related posts:

1. Fonterra revises 2012 payout forecast
2. Fonterra joins First Milk for new European ingredients venture
3. Fonterra boost payout to New Zealand farmers by 3.4%
4. Fonterra confirms price drop for butter and cheese
5. Fonterra to be investigated by Australian Consumer Commission