In most countries milk production is heavily subsidised or price controlled as it produces measurable health benefits to children.
In New Zealand this is not the case - farmers don't get direct subsidies, though they do have a novel tax system around stock management. Even with this they can produce milk significantly cheaper than we pay, but Fonterra's essentially a monopoly and isn't strongly regulated, so we end up paying a lot more than other countries.
In New Zealand this is not the case - farmers don't get direct subsidies, though they do have a novel tax system around stock management. Even with this they can produce milk significantly cheaper than we pay, but Fonterra's essentially a monopoly and isn't strongly regulated, so we end up paying a lot more than other countries.