Drive to cut Wairarapa milk price | Wairarapa News | Local News in Wairarapa

Pressure has come on Wairarapa retailers to drop the price of milk in response to a price war elsewhere.

It follows Auckland boutique supermarket Nosh's announcement that it has reduced the price of its milk to a dollar a litre and aims to beat the supermarkets for price.

Federated Farmers backed the move, saying the price probably should be lower, and called on shoppers to support dairies and service stations that offered cheaper milk.

Local shoppers said prices were too expensive and that to get a better deal, they would change where they shopped.

The cheapest price the Wairarapa Times-Age found today was $1.75 per litre, at Pak'nSave, for Budget brand milk.

But prices at service stations were up to $2.70 a litre.

Wairarapa Federated Farmers president Paul McGill said he expected about $1.20 to $1.50 a litre was a realistic price.

Mr McGill said the cost of producing milk was about 60 cents per litre for farmers.

"The supermarkets can only drop it to a certain point ... but you have to ask where the bigger percentage goes."

He said that while it would not be feasible to drop the price to a dollar a litre like Nosh - which is openly treating it as a "loss leading" exercise - something between $1.20 and $1.50 should be more realistic.

"It's got to be sustainable but it's got to be a fair price that justifies the service," he said.

"[The price] seems a bit out of whack to me."

Local supermarkets did not want to comment on the prices when contacted.

But Foodstuffs, which owns New World and Pak'nSave, called the recent price drops a "great gimmick".

Its general manager of retail, Rob Chemaly, said prices would not be lowered in response but it was up to individual store owners to set their own prices.

Fonterra refused to comment on the price war, saying it was up to retailers to set the price.

"We have no control over that," a spokesman said.

Two litre milk prices in Wairarapa

Dairies: Lake Dairy and Takeaways, Te Ore Ore Rd, Anchor: $5.20. Dairydale: $3.90. Hospital Dairy, Te Ore Ore Rd, Anchor: $5.20. Dairydale: $4.80. Ram Superstore, Roberts Rd, Anchor: $5.20. Dairydale: $4.80. Opaki Minimart, Opaki Rd, Anchor: $5.10. Dairydale: $4.80.

Service stations: Faulknors Mobil, Queen St, Anchor: $5.40. Dairydale: $4.50. Caltex, Chapel St, Anchor: $5.40. Dairydale: $4.80.

Supermarkets: New World, Bruce St, Anchor: $4.73. Pams $3.96, Budget: $3.65. Countdown, Queen St, Meadowfresh: $4.76, Anchor: $4.75. Signature Range: $4.09, Home Brand: $3.54. Pak'nSave, Chapel St, Anchor: $4.39. Pams: $3.96, Budget: $3.53.