Fonterra subsidiary Mainland Products has said that it is to cut wholesale prices of its main milk brands Tararua and Meadowfresh by around 6% from 2 December.

The company expects this to translate to a fall in the supermarket retail price of milk of around 10c/litre, reported the New Zealand Press Association.

This follows claims in September by the Consumers’ Institute that some milk companies and retailer were overcharging for milk products by more than 15%. 

New Zealand milk prices have risen 16% in the last three years – twice as fast as inflation in the same period, according to Statistics New Zealand.