Rewa Butter price goes up by 18% while questions asked on what is being done to ensure prices are not manipulated

The Fijian Competition and Consumer Commission confirms that they have undertaken a review in the price of Rewa Butter following an average increase in landing cost of bulk raw butter by 18 percent when compared to its last assessment however questions are being asked on what is being done to ensure that the wholesale and retail prices are not manipulated.

According to FCCC, the price of 125 grams of butter cost $2.80 but has now increased to $3.21, an increase of 15 percent, the price of 250 grams of butter has increased from $5.40 to $6.41, an increase of 19 percent while 500 grams costs $12.73 compared to $10.60, an increase of 20 percent.

Questions are being asked on what mechanisms are in place to ensure prices are not unethically manipulated and if it is being sold at $5 a pound to staff.

FCCC in a statement says as part of the price revision, the manufacturing and other associated costs of production were analyzed.

They says since 2021 the landed cost movement for raw bulk butter as shown above indicating a fluctuating trend and given the last price change in November 2023, the prices of imported raw bulk butter has been gradually rising.

FCCC says as the global market adjusts to the persisting geopolitical war, the butter market has been influenced and coupled with the rising inflation in New Zealand, the butter source country, supplier cost has also noted an increase.

They say it's important to recognize that the local butter prices are significantly influenced by procurement costs, such as the cost of imported raw materials.

They say as such, pricing determinations are based on a thorough consideration of market factors, including global commodity prices and supplier’s procurement costs based on freight rates, currency exchange rates and so on.

FCCC says their vigilant monitoring of local market fluctuations and prompt implementation of necessary price adjustments remains pivotal in alleviating cost-of-living concerns and ensuring longterm market sustainability and they regularly conduct inspections and monitoring, ensuring regulated prices for essential goods are being complied with.

FCCC is yet to respond to further questions sent.