While it may be true that milk can be bought from NZ$1.85 - NZ$2.30 for 2L at supermarkets in the US, UK, and Aus (see for example <a href="http://www.mysupermarket.co.uk/tesco-price-comparison/Fresh_Milk/Tesco_Semi_Skimmed_Milk_4_Pints_227L.html&quot; target=_blank>http://www.mysupermarket.co.uk/tesco-price-comparison/Fresh_Milk/Tesco_Semi_Skimmed_Milk_4_Pints_227L.html&lt;/a&gt;), these prices are not sustainable. NZ$2.50 is probably the lowest that we could reasonably expect for a 2L bottle of milk.

However, recent advances in dairying and drying technology have meant that the flavour of reconstituted milk powder is virtually indistinguishable from the real thing. I bought some this week for the first time in years and was impressed by its taste. At approximately $1 per litre I think I will be sticking to it for the reasonable future.

And, farmers get the same return from milk powder as fresh milk, so everyone is a winner by drinking it!

As the Dilmah man says, "Do try it, you'll like it!" and save money to boot.

Do people not realise without Fonterra & the dairy industry we would almost certainly become a third world country over night. Then what milk prices would be the least of our worries. I get 2 liters of blue top for $3.60 in supermarket; $1.8 a liter or down the road which doesn't cost any more in petrol as I drive by it on way home can get 2 x 2 liters for $5.70. $2.85 for 2 liters not bad to me so stop whinging & get over it.

For some powdered milk is the only option... and I don't buy butter or yoghurt or cheese anymore. Paul, perhaps you thinking this is silly is a reflection of your income?

powdered milk is disgusting and is in no way a viable alternative to the wet kind

This is pretty silly talk really! If we were that worried about the price of milk we would simply buy powdered milk. It is the water (>90% of milk) that we are being charged for. Farmers get $6-8 / Kg of Milk powder. Powdered milk in the supermarket is about $9 / kg - Great shopping! Liquid processed milk is $27 / kg of milk powder.

Market price for milk is fine. Ask for a market price for the water used to produce it - NZ tax payer would make a fortune overnight

Having just returned from the UK, I was astounded at the low price charged in the Supermarkets for Milk.. about $1.60(NZD) for a litre. I think that in a few places I saw it even cheaper then this! It tasted just fine to me, not watery at all! Its pretty depressing to come back to the exorbitant prices that we get charged for milk and other dairy products.

we have too many people taking a 'whack' from the sale of this product This is a great argument to remove the gst off food as well the delvery guy who has the contract is taking his cut. just by removing gst it would come down to around $2.46 per 2 ltrs Basically we should be buying it straight off fonterra.....

@Obelix NZ's corporate tax rate is pretty much the same as most of our competitors overseas. Oz is 30%,UK around 28% (rates vary across the UK), China 25%, Germany about 29% (different states have different rates), Korea 25%, Malaysia 25%. And I don't see how you think increasing the corporate tax rate will result in lower prices.

Where's Tescos when you need them? They would make so much money here upsetting the cozy duopoly with their proven retail skills. They have a store in Malacca - maybe we could persuade them to come here!

$1 for a loaf of white bread? Seen that anywhere here lately?

And to all those who suggest 'shopping around': Are you seriously suggesting that I buy everything but milk in one place and then waste petrol and time going somewhere else for milk?!

It's highly unlikely to cost me less to do that than to pay the going rate for milk wherever I am shopping - I have to drive 45km to get to a supermarket as it is!

"the price is set by the price they can sell it for, not what it costs)"

Yes, but there is a net price - the selling price - and a gross price which is the selling price + GST.

Ig you make food a net sales item, the price should fall by the GST amount. It is easy enough to give the Competition Commission the power to investigate and where necessary regulate prices.