"Kiwis not getting a raw deal" on butter prices

[harm_less]

you do understand our prices are tied to international markets .....dont you?

 Perhaps you've not heard but sometimes there can be both an overseas price & a domestic price for the same product....

Maybe but Fonterra in this case are paying their farmers a price based on international price parameters so if they reduce prices for domestic destined products then who wears the lower price. 

Do they pay some of their suppliers less because their milk is destined for the NZ market? I suspect the farmers wouldn't be lining up for that deal. 

Do Fonterra take a hit on products sold in NZ using milk bought at international linked price? Can't see that being popular as Fonterra's intent is to maximise profits for their shareholders so again it would impact farmers, just over a wider base.

Opening up NZ's imports of butter from other countries may help to apply market pressures on Fonterra but there will be many who prefer we maintain a protectionist approach to our primary industries.

Not a simple issue to address for sure. I'm just happy to be dairy intolerant so not directly affected by this kerfuffle.