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Tuesday, March 22

Milk pricing inquiry urgently needed

The Minister of Commerce needs to listen to New Zealanders' concerns over milk pricing and initiate a Commerce Commission inquiry, Green Party consumer affairs spokesperson Sue Kedgley said today.

A Consumer New Zealand survey found 79% of New Zealanders think the Government should initiate an inquiry into milk prices.

"Consumer NZ's survey shows that New Zealanders consider there is a virtual monopoly operator dominating the milk market," said Ms Kedgley.

"The survey shows that the public understands that Fonterra controls 90% of all milk produced in New Zealand.

"What we have is a virtual milk monopoly in Fonterra selling to a supermarket duopoly and that is contributing to the high price of milk. This requires urgent investigation," said Ms Kedgley.

"The Minister of Commerce needs to immediately initiate an inquiry under Part 4 of the Commerce Act into whether or not Fonterra is acting