Are we "dumping" our dairy on overseas markets?

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Are we "dumping" our dairy on overseas markets?

Postby aardvark_admin » Sun Jul 26, 2015 2:30 pm

I read this story with great interest...

http://www.stuff.co.nz/business/farming ... egislation

The thing that really caught my eye was this (quoted from the foot of the article):

"The World Trade Organisation defines a dumped product as one where a company exports a product at a price lower than the price it normally charges on its own home market"


Now given that my daughter in the UK can buy our cheese, butter and other dairy products at a lower price in *her* local supermarket than I can buy the same product here -- is NZ "dumping" rather than "exporting"?

What do YOU think?
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Re: Are we "dumping" our dairy on overseas markets?

Postby Screw » Sun Jul 26, 2015 4:24 pm

Could be Economies of Scale Bruce. Tesco and other big supermarket chains there buy shiploads at a time, they're servicing a much bigger market too, 65 million as opposed to 4 million in NZ. Here it's a few truck loads. Could be in-house specials much the same as we do here. Priced at cost or even a loss to get people through the door.

Dairy has certainly come down in price here at Pak-n-Save, $2.89/2lt for milk, cheese and butter are much lower too.
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