Consumers in Fiji should prepare for a rise in powdered milk prices, which are expected to exceed $6 for a 400g packet. This anticipated increase is attributed to escalating dairy raw material costs from New Zealand, Fiji’s primary dairy supplier. The Fijian Competition and Consumer Commission (FCCC) issued a public advisory highlighting an upward trend in supply prices, noting a significant increase in the cost per kilogram of powdered milk from NZD 7.00 to NZD 7.65, marking a 9% rise.
The FCCC stated that global dairy market dynamics have significantly influenced local prices, particularly due to heightened demand from China. In late 2024, dairy imports to China increased by 18% compared to the previous year. Adverse climatic conditions in New Zealand, including droughts, have further constrained milk production, which has been a key factor in the increasing costs of dairy exports.
FCCC’s Chief Executive Officer Senikavika L. Jiuta stated that while local entities cannot control these global market factors, the commission is actively monitoring market fluctuations. They are working to ensure that price adjustments are communicated transparently and equitably to the public.
Currently, the average retail price for the 400g powdered milk stands at approximately $5.49 in Fiji, but this is projected to increase due to the recent supply price changes. The onset of increased prices is expected as Fonterra has revised its forecast for the farmgate milk price for the 2024/25 season, predicting rates between NZD 9.50 to NZD 10.50 per kilogram of milk solids.
While rising prices can be a challenge, they also underscore the necessity for consumer awareness and adaptability in purchasing habits. The FCCC’s diligent efforts to maintain market transparency and consumer protection can help mitigate some of the pressure on households, potentially leading to more informed buying decisions during this period of volatility.
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