Dairy product price hikes, my thoughts.

Just been reading a news article this morning. How one of the "Smaller" Dairy Company's is upping it's payout to equal "the Big" Dairy Company's payout, to attract more suppliers. Great for you if youa a dairy farmer, but they have to buy butter and cheese etc too...:confused:

I don't think the high NZ dollar has had as much effect on the local price as my following personal assumption......... [}] The problem lies in the fact, that Dairy Companies, are fighting for suppliers [}], and because they are upping the payouts ( and so up goes the domestic price of dairy products [}]), to get their suppliers, and we "kiwi consumer" are caught up it their "Private Corporate War".

You are wrong in your assumption Pru2, The price on the world market dictates how much we pay for our dairy goods here.

OK I failed english and have been known not to make myself clear, ( hence the reason I get shot down) I am not saying that the price on the world market does Not dictate how much we pay, I am saying that Maybe the current inflated price we are paying has a contributing factor "priced" into it.
Read this following article www.stuff.co.nz/4440179a13.html , just my thoughts

A couple of articles that I have read in Aussie re butter exports from NZ suggested most of NZ Butter is heading into europe because of the export price it can achieve.

So I asked my Uncle in Switzerland if he saw NZ butter on the shelves there. He said the anchor product is certainly there, but they prefer a brand that is made over there. Much creamier and nicer he says.

So in the next article it was more about bakeries and cake shops securing bulk loads of NZ butter, rather than the individual consumer in Europe. Apparentely Aussie used to get a lot of Kiwi butter for this purpose, and its bypassing us (with the exception of the contract to woollies for some of their Homebrand butter, as per Tiggers past thread).

So One could think then that the bulk purchasers in Europe are buying Kiwi butter simply because its still cheaper for them to buy it, rather than the local stuff.

NZ certainly needs its export market, because imports are still way too high, but I think your domestic market is being driven upwards because of the export market, no doubt about it.

At the end of the day though, if I had a product to sell (in my case its my Aussie home) then I too would sell it to the highest bidder.

From what I have heard Synlait is actually paying less per litre of milk and is attracting more dairy farmers all the time. The dairy owners do not buy shares in Synlait, so moving from Fonterra frees up huge amounts of capital.

HMmmmmmmmmmmm.... once again I counter the "Global Market" theory with....

March 17, 2008, 1:03PM
Iran eases gas ration, but at a cost

© 2008 The Associated Press

TEHRAN, Iran — Iran announced Monday it would ease gas rationing for the next month, allowing people to buy gasoline above the imposed limit during a major holiday, but at a far higher price.
The government introduced rationing in June, trying to reduce large subsidies it spends on gas. The move has drawn widespread anger among Iranians, whose country is one of the world's biggest oil producers.
The rationing rules allow drivers to buy 31 gallons [117 litres] a month at a subsidized price of 42 cents a gallon. [Assuming US gallons that is 11.02 CENTS per liter!!!... my working]

But for the Iranian New Year's holiday, Nowruz, they will be allowed to buy above that level at a price of $1.68 per gallon, [wow... 44.4 cents/L] Oil Minister Gholam Hossein Nozari said, according to the official IRNA news agency.
Many Iranians take family trips during Nowruz, during which children are out of school for several weeks.
Iran does not have enough refineries, so it must import more than 50 percent of the gasoline its people use. The government is hoping to reduce the $10 billion it spends annually to import fuel and sell it at the subsidized price.

From... www.chron.com/disp/story.mpl/ap/world/5626073.html

So... it's all well and good getting a maximum price offshore for NZ products, but does that really justify holding the domestic market to ransom for what are basically essentials? Why do the Middle East countries not pay the pump price that we have to... it IS a global market you know!

Sorry to harp on... but it stinks that we continue to get ripped here ! Rant over lol

I am not sure NZ or Aussie is as far as petrol prices go, yesterday my Uncle in Switzerland sent along a price list for fuel there, in the UK, and in America and the only one cheaper was in America.

I deleted the email, but will ask if he can re-send it to me so I can quote properly....

But we can talk about why natural gas prices are so dear and why they are dictated from overseas when the supply is in Aust. (and I presume NZ).

LT, there is a theory that the reason that fuel prices are so low in fuel producing countries is to keep the population, which is volatile, happy and content. Perhaps we are just not noisy/aggro enough here about what we expect...? []

The same applied in the US with cheap food, the reason that the subsidies etc were introduced way back when was to bring food prices down in the face of major consumer backlashes over how much stuff was costing - and to keep the government of the time in the good books with their constituents.

In Europe and in Mexico, when the grain prices started to bite badly recently, affecting (respectively) pasta and tortillas, the populace demonstrated and raised a real row about it.

What do we do? Winge on nice quiet websites

Here we go, this is from my Uncle in Switzerland re fuel prices and converted into $A:

"Petrol here is about A$ 1.90 per litre , diesel a bit more . Over the border in France and Germany petrol is 25-30% dearer and dearest of all in this part of the world is Britain with tax at over 80%.

M (cousin) complains about her petrol prices in America at around US$ 0.85c per litre!...."...

My local Aussie supplier is at $A1.33 for unleaded this morning (not the premium stuff) but by this arvo the price will shoot up another $A0.12 and stay at the dearer rate until after the easter weekend.

Hope this is of interest....

swaggie;152797 wrote: My local Aussie supplier is at $A1.33 for unleaded this morning (not the premium stuff) but by this arvo the price will shoot up another $A0.12 and stay at the dearer rate until after the easter weekend.

They surely can't blame that little blip on the price of crude [}]

Happens every Wednesday afternoon Tigger in Sydney and surrounding regions. Fairly sure it happens elsewhere but can say the above from personal experience.

Usually in a normal week the price will drop down Saturday afternoon by a few cents, then after Monday morning work rush, will settle by afternoon for a couple of days before zooming up again.

Sydney talkback media this morning involving the ACCC (price corruption body) are suggesting during the cheaper pricing, major suppliers are turning off bowsers and saying they are broken down.
The ACCC is aware of one supplier having unleaded supply problems, but not others who are still selling the premium unleaded whilst closing down the more popular "standard" (91 in NZ lingo) unleaded.

Yup... can confirm the same in WA Swaggie. What they called the "Weekly Price Cycle", even on the TV news. How they justified that only the Sky-Fairy knows, because it certainly isn't anything to do with the price paid for crude!!! [}][}] and it ALWAYS jumped before a holiday weekend!
The prices in WA were set for the day though and couldn't be adjusted once the station opened (or from 6a.m. IIRC)

yesterday our local went up to $A1.40 per unleaded litre, now its at $A1.479 per unleaded litre.

Typical Thursday price increase that will stay up there now for the next couple of days....