Milk prices - ouch

We paid $3.63 for 2 litres milk on 12 January. It was up a little more last week. This week $4.98 !!! Other brands were all from $4.50 up wards.

I knew there was a rise on the way as there had been something about milk sales dropping by something like 5% on the news and that there was another rise on the way but this is crazy.

Milk will now be off our shopping list. It’s simply become too expensive. Looks like green tea for me from now on.

And before those of you who like to bash low-income earners start up - I note – we don’t smoke or drink. We never have takeaways. We never go out except on grocery shopping days i.e. once a week. Our money goes purely on the basics such as power, phone, rates, mortgage, insurance and medical costs etc We really have reached the point where there is no extra to cut back on. We don’t even buy things like powder for the dishwasher – its cheaper to use grated sunlight soap with washing soda!

Thank goodness we don’t have children – no wonder low income families buy soft drinks at .82 cents for th Budget brands and not milk…..

That's outrageous. Who can still afford that!

$2.19 for 1 ltr today at Countdown .. and thats up from $2.04 last week ... looks like black coffee for me now

All the Dairy Companies in NZ will be soon announcing 3rd highest payout on record to NZ dairy farmers. IMHO

What sticks in my gut is, I read reports of NZ export snapper can be brought for $10-$15 a kilo on aussie market??? when we paying up to $45 for same product'

Does the same apply to our dairy exports??????????????[}]..................................................................................................
Could it be these are the same people that tell us they are keeping the country going whilst ripping the general population off???????

My 2cents worth (ban me smilie) + beer smilie

Prices are going up big time everywhere. They say its a ripple effect from GST, but I think its racketeering. The loss of those cheap horrible tomatoes from Aussie is bound to have a detrimental effect on local produce. Lettuces are a horrendous price and if you feel their hearts, there's nothing to them. Thank goodness for the garden. You can buy powdered milk and then mix it below the recommended rate to eek it out a bit. Getting a milking goat or a cow is looking a whole lot more desirable.

that rise has slipped by me as I have been milking my goats for aboout 16 months now and haven't bought milk. I'm actually getting too much at present and am freezing some and feeding some to the pigs. You can only make/consume so much cheese.

We found 2L milk selling for $1 cheaper at a corner dairy than at the supermarket.:confused:

I'm not surprised, I worked with a guy from Jordan and he told me you can buy NZ lamb in Jordan for much cheaper than you can buy it here [:0] I mean come on, shipping it half way around the world and it's cheaper. and of course anyone who has sold animals know how much you get for them, and then you see a leg of lamb in the supermarket for $50. Just price gouging [xx(]

clarry;355452 wrote: All the Dairy Companies in NZ will be soon announcing 3rd highest payout on record to NZ dairy farmers. IMHO

What sticks in my gut is, I read reports of NZ export snapper can be brought for $10-$15 a kilo on aussie market??? when we paying up to $45 for same product'

Does the same apply to our dairy exports??????????????[}]..................................................................................................
Could it be these are the same people that tell us they are keeping the country going whilst ripping the general population off???????

My 2cents worth (ban me smilie) + beer smilie

Shall we do a bit of maths?

I find it very confusing that dairy farmers are paid by kg of milk fat, not by litre of milk. If they were paid by litre of milk everyone would cry out 'foul'. So how much is a litre of milk worth?

I have to make a few assumptions here as I don't know the exact percentage of milk fat.

So here is what I'm going to work with - please put me right and the calculation can be adjusted.

Payout per kg of milk fat: $ 6.70

In 1 litre of milk there is 3.5g of fat.

To get 1 kg of milk fat you need 28.5 litres of milk (100 : 3.5 = 28.5)

6.70 : 28.5 = 0.23 which means that the dairy farmer gets about 23 cents per litre of milk.

So if 2 litres cost $4.50 in the shop, one litre costs $2.25, 25 cents of which go to the farmer who has to pay his mortgage, milk the cows, pay a farmhand and all that.

Where do the other $2.00 go?

Suggestions?

I'd really like to know.

I have switched to milk powder now and use it in a more diluted way thatn the directions. Bought some butter the other week just to make pastry but will use table spread for other uses, though how do you keep butter from going rancid, probably should freeze it - ideas on that would be helpful as it is too expensive to waste.

When I bought milk the other day it was between $5.50 to $7 for 2 litres - never seen it so high.

Blimey, it wasn't that much last weekend (it was $3.55 for 2 litres of Budget brand). I'll have to check before I buy this weekend. With three growing boys, milk is a staple, but we'll have to cut down if it has gone up by a dollar for 2 litres (we currently get through about 8 litres per week).

Simkin, I have know idea whether it would be $2 per litre, but the costs of the milk processor would include cost of transport (pick up of raw product, delivery of finished product), processing costs (wages, facilities, compliance, spoilage), marketing, labelling and the cost of the container itself. And I guess they have to make a profit for the shareholders.

Simkin;355481 wrote: Shall we do a bit of maths?.........

...............6.70 : 28.5 = 0.23 which means that the dairy farmer gets about 23 cents per litre of milk.

So if 2 litres cost $4.50 in the shop, one litre costs $2.25, 25 cents of which go to the farmer who has to pay his mortgage, milk the cows, pay a farmhand and all that.

Where do the other $2.00 go?

Suggestions?

I'd really like to know.

I don't know how accurate the assumptions you have used in your calculation are but the 10% of retail price being the farmers' return is similar to that received by most produce growers (i.e. fruit, vege, etc) so you're probably not too far off of the mark.

Simkin, your calculation makes perfect sense.
Oraganix, agree with you too.
Once again the poor old producer gets paid jacks*** and then gets blamed for the high retail price by people who don't have a clue what's really going on.

a big cost in the productin and selling of anything now is the fuel for the transport.. from farm to plant .. from plant to outlets.. fuel has just gone up again.. the rego has been hiked up as well..
it all has a flow on.. and i expect we will see alot of price hikes .. i cant believe the price of fruit and veg... thank goodness for the veg patch and neighbour with house cow!
we are lucky we have the option of a goat or a big veg patch and own meat etc.. i cant imagine how soem are coping at all..