Higher milk price angers grocers

Press, 15 October 1986, Page 3

Higher milk price angers grocers

The fixed price for cartoned milk went against the Government’s free market policies, said the National Association of Retail Grocers last evening.

The national executive of the association, which represents all grocers and supermarkets in New Zealand, has ended two days of meetings in Wellington with a statement hitting at the high price set for the new cartoned product. Grocers have been able to sell milk in cartons since October 1, but it is available in cartons only in Auckland and Invercargill.

Milk producers seem wary of entering the market, and grocers are pessimistic about the prospect of good sales, when the litre price, 89c, has been set 12c higher than the bottled product.

The national secretary of the Retail Grocers’ Association, Mr David Hayward, said members were disappointed with the “fixed and exorbitant price” set for cartoned milk. “The decline in milk consumption could be arrested if a more realistic cartoned milk price were established now, outside the rigidity which has controlled the milk pricing, packing and distribution system for too long,” he said.

“The consumer is being asked to pay a premium for the follies of the old system when every other aspect of Government policy is aimed at freeing up the economy and creating a competitive market price,” said Mr Hayward. The Milk Board, which set the price in conjunction with the Government,

appeared to be hiding behind the antiquated regulations of the Milk Act. “Vested interests have apparently lobbied for the status quo without regard for the consumer who,’ as with every other daily commodity, wishes to decide how, when and where to buy milk in the most appropriate packaging,” he said. The president of the association’s Canterbury branch, Mr Keith Roper, said consumers would eventually decide how quickly bottled milk would be phased out. It was evident customers would appreciate the convenience of not having to return bottles. A report from Invercargill showed that cartons had taken about 20 per cent of across-the-counter milk sales in shops where it was available.