Dairy Prices Fall Again: But No Respite Expected
NEW ZEALAND - International dairy prices have fallen for the second successive month, but it's unlikely to translate to a cheaper grocery bill.
6 February 2008
1 minute read
The ANZ Bank's World Commodity Price Index fell 1.4% in January, as global dairy production increased in the wake of surging prices and as buyers start resisting having to pay higher prices for staples like butter, cheese and milk.
Dairy prices were the largest drag on the index, falling five percent, following a 1.8% fall in January.
However, ANZ chief economist Cameron Bagrie says it's unlikely to translate to a cheaper bill at the supermarket.
He says prices for skins and kiwifruit have also fallen, while prices for meat, aluminium, seafood, wool and sawn timber rose.
When converted back into New Zealand dollars, returns at the farmgate slipped 1.8% as the currency strengthened against its American counterpart.
Supermarkets say sales of dairy products have fallen as consumers respond to high prices.
Source: Radio New Zealand
