Powdered Milk Prices Increase

by Timoci Vula

Fiji Times - Tuesday, April 13, 2010

PRICES of all powdered milk Rewa Dairy and other brands have increased.

The Prices and Incomes Board (PIB) approved the increases from 28 per cent to 41 per cent per carton as effective on Saturday, April 10.

The new price of a carton of Rewa powdered milk containing 24 packets (500grams) is $118.14, a 41 per cent increase from $84.01.

Consumers should expect to pay the new price of about $6 per packet once traders have purchased new stock, which includes the 12.5 per cent VAT and the 10 per cent mark up if traders bought directly from the factory.

For the other brands of instant full cream powdered milk, the price of a carton of 24x500g now sell at $127.70 from $99.66 a carton; a carton of 24x450g has increased to $114.93 from $89.69 a carton; and a carton of 24x425g increases to $108.54.

Accordingly, consumers should pay around $6.50 per packet of 500g, around $5.80 for a 450g packet, and around $5.50 for a 425g packet of other brands of powdered milk.

Acting PIB secretary Lusiana Naimawi said the increase in the ex-factory price of milk powder was because of the increase in the landed cost of milk powder. "Consumers are advised that the new prices will apply once traders have purchased their new stock," Ms Naimawi said.

Rewa Dairy chief executive Ratu Savenaca Seniloli welcomed the price increase.

"The co-operative is very appreciative of the price approved, which is based on the current landed price of milk powder and imported bulk butter," he said. "At least we are allowed to trade with margins and this will help our various commitments to our suppliers, factory improvements and the industry development activities.

"We urge that price adjustments be more prompt to reflect the fluctuating world dairy prices."

Ratu Savenaca said there are measures in place to increase local milk production but the shortfall was huge, and "we hope that the upcoming Food Security Symposium this Thursday will bring more serious focus to the local dairy industry".