Milk and butter prices go up due to global factors while fuel price could go up again
Practise prudence in your spending habits - FCCC

Milk and butter prices go up due to global factors while fuel price could go up again

Practise prudence in your spending habits - FCCC

By Vijay Narayan
Friday 24/06/2022
Milk and butter prices go up

Expect prices of goods impacted by global factors, to continue to rise as the Reserve Bank of Fiji has predicted that the inflation rate which currently stands at 5 percent is expected to go as high as above 7 percent by the end of the year before it starts going down.

With these global issues continuing to affect us, the Fijian Competition and Consumer Commission has also confirmed that prices of Rewa Powdered Milk and Rewa Butter increase from today.

The Commission stresses that it is important to remember that the measures brought in by the government and the Commission cannot completely eliminate rising costs, which means that all Fijians will need to do their part as consumers and prepare to be more frugal in the days to come and practise prudence in their spending habits.

It says Fiji’s major dairy source, Fonterra, based in New Zealand, is experiencing expanding overseas demand and higher milk prices offered by the leading dairy cooperative.


This has put pressure on Fonterra's product prices to rise.

The FCCC says with such price movement globally, coupled with Fiji’s new labour wage amendments and nominal inflation, the prices of most milk brands available in the market are expected to rise.

The spillover effect from the global factors means that many goods, manufactured products, and services that relied on the global services, as well as goods sourced from overseas, have become scarcer, and more expensive to get.

This includes things such as fuel, raw materials for building, computers and imported foods like produce (potato, onions and garlic), wheat, edible oil and dairy products.


fijivillage had earlier asked the FCCC whether fuel and wheat prices would go up again, and it has been said that we expect that based on the negative effects seen for us based on the global factors.

The Commission says in fact, the outbreak of COVID-19 placed a massive constraint on the milk and butter manufacturing market in 2020, as supply chains were disrupted due to trade restrictions and consumption declined due to lockdowns imposed by governments globally, which has been carried into 2021 and onward.

The Global Dairy Industry, which is the source of three major price regulated items - powdered and liquid milk, and butter, has been experiencing rising global milk production post COVID-19 till date.

The FCCC says according to the Food and Agriculture Organization, the increase in world dairy prices in 2021 was mainly driven by China’s imports.


China is the world's largest dairy importer, and in 2021, imports surged significantly due to rising demand from consumers, the food processing industry and increased food services activities.

Import demand also rose in several other countries, including Mexico, Indonesia, Vietnam and Bangladesh, reflecting increased market activities and consumer demand.

The FCCC says it is important to note that our domestic prices are largely driven by the prices for the goods we import from overseas.

The Commission says the prices for these overseas goods are set by global manufacturers, which as a small Pacific Island Country we have no choice but to accept.

The FCCC says there are measures being taken to help consumers deal with this inflation, such as the work being done by the Fijian Government to help many people and businesses through many initiatives, grants and programmes.

It says notable among these initiatives has been the removal of VAT from essential items, which includes liquid and powdered milk.

The FCCC says it has also played a role in this, by ensuring traders are passing on the benefit of this initiative to Fijian consumers.

In addition, FCCC remains committed to ensuring that our markets are sustainable for both consumers and traders.

The Commission says they regularly conduct on the ground inspections, monitoring and ensuring regulated prices for essential goods are being complied with.

Latest Videos

Stay tuned for the latest news on our radio stations

CFL radio frequencies
RKS and Tailevu North retains Tailevu Zone title
RKS won the boys division with 25 gold, 21 silver and 24 bronze. Tailevu North College took out the girls title with 33 gold, 17 silver and 9 bronze ...
3 days ago

Grammar wins Suva Zone 2 girls and boys title
Suva Grammar School have taken out the boys and girls division titles of the Coca-Cola Suva Zone 2 athletics meet. The Grammar boys finished with 28 gold, 24 silver and 15 bronze.
14 days ago

Words matter, especially from a Minister - DPP
Words matter, especially from a Minister, and these words were inappropriate according to the Director of Public Prosecutions Christopher Pryde while ...
15 days ago
Significant increase in fuel prices from tomorrow while significant decrease in gas prices
Get ready to dig much deeper in your pockets as there is a significant increase in fuel prices from tomorrow while there is some relief as there is a ...
3 hours ago
18 year old student found dead outside his girlfriend's home in Sigatoka
An 18 year old student has been found dead outside his girlfriend's home early this morning in Waiqali Settlement, Maro, Sigatoka. Police say it ...
2 hours ago

Parents say primary school students were forced to play in the dark
Some parents are raising serious concerns that their children were forced to play in the inter primary soccer at Ratu Cakobau Park in the dark last ...
3 hours ago

Fiji on it’s path to recovery with many sectors delivering improved results after the pandemic – RBF Governor
The feedback from the tourism industry reveals that hotel occupancy rates and revenue per available room are increasing rapidly, with some hotels ...
3 hours ago

Bainimarama calls for serious ocean action commitments
‘We are not prepared to watch our reefs die, our fish stocks leave, and our communities be lost to the rising seas’. This message was relayed ...
4 hours ago

FijiCare marks 30th anniversary with 2 international awards
FijiCare Insurance Limited has received the best Health Insurance Provider Fiji and the Best Digital Insurance Initiative Fiji by the International ...
8 hours ago