October 3, 2008

Fonterra to Lower Dairy Prices in New Zealand

Fonterra Brands New Zealand has confirmed that it will lower the price of its dairy products in the coming months.

According to the company, while global dairy commodity prices remain well above traditional levels they are softening and this will flow through to the prices it charges its customers for products such as cheese and butter.

Peter McClure, managing director of Fonterra Brands, said: "While we do not set retail prices, the prices we charge our customers will fall and we expect that to flow through to the shopping aisle. We have product in inventory such as cheese that was bought six months ago when its commodity price was more than double historical averages. So it might take some time for our prices to drop in some categories, the overall message however is they will drop."