Dairy products' prices come down

With the timely decision by the Government to reduce the price of imported milk powder, Fonterra Brands Lanka announced they would reduce the price of its dairy products.

In an agreement with the Ministry of Trade, Commerce and Consumer Affairs, Fonterra said it will reduce dairy prices on Anchor, Anlene, Anmum and Ratthi brands following a recent softening in commodity prices. The new retail selling price for ANCHOR Full Cream Milk 400gms pack is Rs 260.

Fonterra Brands Lanka's Managing Director, Achyut Reddy, said: "While global dairy commodity prices remain well above traditional levels, they are softening and it has enabled us to reduce the prices charged to our customers."

Sharp increases in global oil prices and rising direct costs in agricultural inputs such as feed stocks, fuelled record increases in Whole Milk Powder (WMP) and the Base Commodity Price (BCP) last year. However, over the past six months, those have declined.

"We want our consumers to continue to benefit from such a decline," said Achyut Reddy. "We will continue to monitor the world dairy market and continue price reductions whenever possible," he asserted.

Trade, Marketing Development, Co-operative and Consumer Services Minister Bandula Gunawardane said the Government took the decision following an agreement with Micky Company under section 14 of the Consumer Protection Act.

A 400 gram milk powder packet will be now sold at Rs. 260 while a kilogram packet of milk powder will be sold at Rs. 587. Accordingly, one kg packet of milk powder was reduced by Rs. 50 and a 400 gram packet by Rs. 15.

The Minister said legal action will be taken against traders who violate the Consumer Protection Act.

The Minister explained terrorism, unexpected price hike of crude oil in the world market and the food crisis also led to the increase in milk powder prices.

"Some tried to increase the price of a 400 gram milk powder packet between Rs. 300 and Rs. 370 recently, but the Government prevented it," he added.

Minister Gunawardane added that moves were afoot to popularise consumption of fresh milk among the public. A fund will also be established for that purpose, he noted.