Shalveen Chand
Fiji Times - Thursday, April 01, 2010
REWA Dairy has asked for a 60 to 80 per cent increase in the price of butter and powdered milk, off the back of escalating dairy product prices in the world market.
Rewa Dairy Corporative Limited chief executive Ratu Savenaca Seniloli confirmed asking the Prices and Incomes Board for a significant increase in butter and milk retail prices.
The company made two PIB submissions, one in November last year and another in February. The increment being looked at is between 60 and 80 per cent of the current price.
Ratu Savenaca said he met Commodore Voreqe Bainimarama last week and informed him of losses faced by the company because of rising import costs of raw materials.
He said the prices of most imported dairy products were up 60 per cent.
This, he said, reflected in the price of raw butter imported by the company which was processed to Rewa Butter.
"Currently we are landing imported butter at $7 a kilogram. After we add our secret ingredients, packaging, we are selling butter to the local market at $5.88," said Mr Seniloli.
"The current consumption rate of butter in the local market is 150 tonnes a month. And we have not been making profit."
Ratu Savenaca said if a price increase was not granted, the immediate effect would be on development projects the company had with farmers and other stakeholders.
He said this would be followed by an impact on the company's labour force, with casual employees the first that would have to go.
Currently, 500 grams of Rewa Butter retail at $3.55 and Anchor Butter of the same weight sells at $3.99.
"The world dairy prices are going upwards. Even the Australian and New Zealand dairy markets are cutting off their import supply. This has not been helped by the fact that the Fiji dollar has continued to weaken against the two currencies," Ratu Savenaca said.
He said liquid milk prices were also part of the submission as the exchange rate had put pressure on packaging prices.
"Our core business is the growth of the dairy industry and to have this we need to be able to offset the losses and for that a price increment is needed," he said.
The PIB did not wish to comment on the matter.
Butter in short supply
Thursday, April 01, 2010
TWO major bakeries in Fiji have confirmed a shortage in the supply of butter, saying it has only disappointed customers who preferred Rewa Butter over margarine.
Raiwaqa Bakery owner Atela Yee said the Rewa Butter shortage had been experienced continuously since late last year and nothing had changed.
"We often order 30 cartons of 125 grams Rewa butter Rewa Dairy Cooperative will only supply us with five cartons or none at all," Ms Yee said.
Hot Bread Kitchen administrator Losalini Kadavi said they had not been supplied their normal quota of butter orders since October 2009.
Questions forwarded to Rewa Dairy chief executive Ratu Savenaca Seniloli remain unanswered.
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