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New Zealand shoppers face a price hike of up to 18 cents for a litre of milk this month.
Driven by surging milk prices on the world commodity markets, New Zealand's dairy cooperative Fonterra announced it was raising the prices of dairy products sold to retailers by between six and 14 per cent.
Fonterra Brands managing director Peter McClure told the Dominion Post liquid milk would go up the most, with smaller increases in the prices paid for cheese, butter and yoghurt.
Fonterra owns the Anchor, Mainland and TipTop brands.
At a Wellington supermarket today, two litres of blue top milk cost between $2.47 and $3.56, depending on brands -- an average price of $3.02.
A 14 per cent rise would take this to $3.44.
Both Progressive Enterprises and Foodstuffs - operators of most of New Zealand's supermarkets - said the costs would be passed on to customers.
A Progressive Enterprises spokesman said the price increase on milk would likely take effect late this month.
Global dairy prices started going up last September, driven by the Australian drought, cuts in EU subsidies and cattle feed being used to make biofuel instead of milk.
- NZPA
