Dairy prices move into luxury zone
The Dominion Post | Wednesday, 14 November 2007
The dairy boom is busting wallets wide open, with a sizzling 23 per cent jump in butter prices last month.
Cheese, milk and yoghurt prices are also rising, causing concern among nutritionists about the affordability of such foods, especially milk and cheese.
"There are a lot of people who can't follow the recommended guidelines for healthy eating in New Zealand and as these foods become more expensive, fewer and fewer will be able to do that," Otago University nutrition expert Winsome Parnell said.
About 10 per cent of the population would be severely affected by high food prices, and that figure would be growing, she said.
"It means poorer nutrition and that will affect physical health."
Overall food prices rose 0.6 per cent in October and 3.6 per cent for the year.
Half a kilo of butter cost an average $2.47 in October, according to Statistics New Zealand figures issued yesterday, up almost a quarter in a month.
In a Wellington supermarket, some margarines are now about half the cost of the cheapest butter.
A big block of mild cheddar cheese in supermarkets now costs an average $7.72, up 11 per cent in October.
Yoghurt is up more than 21 per cent in the past year.
And milk is also up again, rising almost 4 per cent in a month to $3.01 for two litres on average.
Milk had already risen about 9 per cent in the past year.
World dairy prices have risen because of strong demand, more land being used for biofuels and the drought in Australia.
World cheese and butter prices rose more than 50 per cent in just a few months this year, indicating that prices in New Zealand have further to rise.
Milk powder prices are twice as high as the long run average. Farmers are expected to get a $6.40 a kilogram payout for milk this season, well above last year's payout.
High world grain prices will also make poultry, bread and cereal more expensive, in time.
Frozen chicken prices are up about about a third in the past year.
Professor Parnell said mothers did without to protect and feed their children when household budgets were stretched.
However, as prices rose, children would be affected.
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