CONSUMERS have been advised to brace for an increase in powdered milk price to over $6 a packet of 400g, in line with rising dairy raw material prices in New Zealand, Fiji’s main source of dairy products. In an advisory issued by the Fijian Competition and
Consumer Commission (FCCC) yesterday advising members of the public to prepare for increase, FCCC noted the upward movement in supply price.
“FCCC monitoring and research shows a significant increase in cost of powdered milk sourced from New Zealand. As New Zealand is one of Fiji’s primary source countries, it is anticipated that prices will continue to rise in the coming months,” the competition regulator stated.
“Global dairy markets have been affected by heightened demand, particularly from China, where an 18 per cent year-on-year growth in dairy imports was recorded in late 2024. Climatic conditions have also played a role, as New Zealand, a key dairy-producing nation, experienced drought conditions across major regions, which reduced milk yields and tightened supply for export.”
FCCC chief executive officer Senikavika L. Jiuta said they are monitoring local market fluctuations to ensure price adjustments are promptly and fairly passed on and reported to the public.
“While global factors influencing powdered milk prices are beyond local control, to protect consumers, we are taking these measures, as well as working on enhancing market transparency through regular price movement reports and early warning systems on global commodity trends,” Ms Jiuta said.
According to FCCC research and monitoring, recent shipments of powdered milk showed an upward movement in supply price from $NZ7 ($F9.47) to $NZ7.65 ($F10.35) a kilogram, indicating a 9 per cent increase.
“This has attributed to supply-side disruptions, and local inflationary pressures in Fiji’s economy,” it stated.
“In addition, as of February 2025, Fonterra has updated its forecast for the 2024/25 season’s Farmgate Milk Price to a range of $NZ9.50 ($F12.85) to $NZ10.50 ($F14.21) a kilogram of milk solids (kgMS), with a midpoint of $NZ10.00 ($F13.53) a kgMS.
“With the above price movement, the current average retail price in Fiji for the 400g Powdered milk is $5.49 and this is anticipated to increase to above $6.”
Note: This article was first published on the print version of the Fiji Times dated June 5, 2025
