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Liam Dann: NZ Herald business editor at large on dairy products driving a spike in food prices · Best of Business

• 0:09
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  Speaker 2: Now.
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  Speaker 3: I've been speaking about the price of dairy earlier in
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  Speaker 3: the program's been going up quite a bit, driving the
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  Speaker 3: food costs higher in the last year or so. Food
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  Speaker 3: prices up three point seven percent over the last year,
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  Speaker 3: Milk up though fifteen percent, cheese up twenty four percent,
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  Speaker 3: butter up sixty five percent. Liam dan As The Herald's
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  Speaker 3: Business editor at large Aliam good A, Heather, I mean
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  Speaker 3: it hurts, but we also see the good side of this,
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  Speaker 3: which is that our farmers are making some money for
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  Speaker 3: the country, right.
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  Speaker 2: Yeah, Well, I mean I always do. I'm always pleased
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  Speaker 2: to see dairy prices booming. I know it's you know,
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  Speaker 2: these rises weren't surprise any of the king bakers and
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  Speaker 2: people who are using a lot of butter, because there's
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  Speaker 2: been penny of stories about it going through the roof.
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  Speaker 2: But you know, and of course I had a look
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  Speaker 2: on Facebook and everything, and I'm the story and all
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  Speaker 2: the comments at the bottom. You know, why do we
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  Speaker 2: have to pay so much when we make it here?
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  Speaker 2: And I can't help thinking, do we make it or
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  Speaker 2: do some you know, it's it's it's Fonterra is still
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  Speaker 2: a company of you know, and the farmers are getting
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  Speaker 2: up at five in the morning. They're making it when
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  Speaker 2: you know, we can't tell them to sell it to
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  Speaker 2: us cheaper. They can get a better price in China,
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  Speaker 2: and they can get a better price in China right now,
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  Speaker 2: So that that's driving it up a little bit more.
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  Speaker 2: I think on the you know, pointing towards where the
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  Speaker 2: inflation numbers are headed, it's a little it was a
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  Speaker 2: little bit more than the economists would have liked to
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  Speaker 2: have seen today. They you know, there was there's some
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  Speaker 2: other prices we can't control, like coffee prices were up
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  Speaker 2: about twelve percent, twenty one percent for instant coffee drinkers.
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  Speaker 2: That's not much fun. But you know, there's still the
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  Speaker 2: economists recently confident that, you know, because of the real
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  Speaker 2: downturn in the in the core of the economy, that
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  Speaker 2: the inflation isn't going to go back to those high levels,
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  Speaker 2: and that this temporary and you're going to see or
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  Speaker 2: non tradable inflation continuing to fall balance it all out.
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  Speaker 3: Now, Liam, I see that the airfars and I did
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  Speaker 3: make this point in the program. The airfares have drawn
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  Speaker 3: attention again because the international airfairs for them just in
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  Speaker 3: April compared to March went up by twenty five percent. That's,
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  Speaker 3: of course because there were school holidays and you know,
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  Speaker 3: Easter and blah blah blah. But now the obvious assumption
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  Speaker 3: is that the airlines have hiked the price for the
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  Speaker 3: school holidays. But is it also not possible that it
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  Speaker 3: simply is as more people book the supply and demand
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  Speaker 3: algorithm casina drives the prices up.
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  Speaker 2: I guess, you know, there's been that shortage of planes
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  Speaker 2: and so on, but I would say, you know, fuel
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  Speaker 2: prices are quite significantly down that they've been a good
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  Speaker 2: you know, going in the right direction. So you know, yeah,
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  Speaker 2: look as a dad who's booked all his overseas holidays
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  Speaker 2: just recently during the school you know, and I have
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  Speaker 2: to go during the school holidays. Yeah, it's a lot
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  Speaker 2: more still at school.
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  Speaker 3: I thought they were at union.
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  Speaker 2: Two of them are still at school. And my wife's
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  Speaker 2: a teacher, so I can't get around that. You know,
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  Speaker 2: that's the you don't think of when you think about
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  Speaker 2: the teachers having all those holidays because they can't get
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  Speaker 2: the cheap IFIs they've got to go win US school holder.
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  Speaker 3: You know what that is?
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  Speaker 2: A what's that?
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  Speaker 3: That's the first world problem.
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  Speaker 2: That's a first world problem. It absolutely is. Yeah, no,
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  Speaker 2: I'll accept that.
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  Speaker 1: Liam.
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  Speaker 3: It's good to talk to you as always. Thanks man,
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  Speaker 3: Liam dan Good, General Business Editor at Large.
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