17 Feb 2011

Milk prices set to rise again

6:03 am on 17 February 2011

Dairy co-operative Fonterra says it will not be able to hold back the cost of milk for much longer if commodity prices continue to rise.

Prices at Fonterra's fortnightly online milk auction have gone up by 25% since November.

The company raised its milk price for stores in January and says the increase would have been higher if it had not chosen to absorb $10 million to $12 million worth of the commodity price.

Fonterra brands managing director Peter McClure says that can not be done forever, as the milk price is under pressure.

He says consumers should shop around for their milk as price differences can be substantial.

Mr McClure says is possible there will be another price increase later in the year.