Prices of milk powder will increase

Last week, Australia and New Zealand, the two largest exporters of milk, were forced to apply a premium of 15.4 per cent on the product because of the high cost of production and the unstable weather including torrential rains and the earthquake that occurred at the beginning of this year.

Distributors have enough stock to sell on the local market until the end of March. However, the new shipments, expected in the country in the coming weeks will be imported at a higher price. The impact is inevitable, said a source from the importation sector.

Lawrence Wong, executive director of La Trobe Ltd and supplier of Snowy milk, stated that local distributors have very little control over the price. “In Mauritius, we import about 10,000 metric tonnes of milk powder annually depending on demand and consumption, which is less in quantity in comparison to other countries, including some in Africa. In this regard, our bargaining power is limited and we are forced to import milk at the price displayed by the exporting countries. Thus, an increase of prices in Australia will no doubt affect our market,” he said.