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High milk prices? Well, now we know why…
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I guess this explains why milk, other dairy products, tomatoes, etc, are so expensive.
And the Minister for Agriculture, David Carter, can save taxpayers the expense of a Parliamentary inquiry into why milk is so expensive here in NZ…
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I guess it wasn’t such a bright idea to allow supermarkets to buy each other up, until we had only two, nation-wide chains remaining. Duopolies are not noted for promoting competition and keeping prices down.
New Zealand’s supermarket duopoly:
Chalk up yet another cock-up for the free market, unregulated economy?
I think so.
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+++ Updates +++
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Parliament’s Commerce Select Committee inquiry into milk prices gets under way,
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Related issues
Why did the fat kiwi cross the road?
Hey, People! Leave our kids alone!
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The problems lie with the retailers – not the farmers!
You might be right, Peter. Their sales has risen from $3.6 to $5.36 billion – and that’s a lot of ‘stuff’ to sell to make such a handsome increase in turnover. I’m thinking that there is good reason why Progressive Enterprises and Foodstuffs (which account for 95% of the market) resist calls for an investigation.
Why on Earth we ever permitted a situation whereby there are only two supermaket chains in this country is a question I’d like answered. Why has the NZ Commerce Commission approved buy-ups of of supermarkets until we are left with a duopoly?
Surely they must have known that duopolistic practices would restrict competition in the marketplace?