Saturday, October 23, 2010

Disappearing Milk Powder and The Inexplicable Price Hike

"Powdered milk, it is milk that has been dried. It is less expensive and easier to store than fresh milk. Many poor families use powdered milk instead of commercial formula for their children."


Milk Powder in a wooden bowl


Milk Powder is a product used by most households in Jamaica because it is inexpensive and easier to store. We use powdered whole milk and more recently we started using powdered coconut milk in our traditional recipes.  However, recently there has been a shortage on the local market, which I only realized was happening when I went into a supermarket and could find none.


We have a few brands of whole milk on the market, and none of the products is locally made, it is usually sourced from New Zealand when last I checked. There has been no public outcry so I am assuming that someone somewhere received notification of the shortage and I simply missed the bulletin.


Powdered milk, it is milk that has been dried. It is less expensive and easier to store than fresh milk. Many poor families use powdered milk instead of commercial formula for their children.


Unfortunately, I noticed that after this powdered milk shortage ended, the price of powdered milk rose remarkably, in addition to a few new brands coming to the market. I'm unaware of the rationale for this price increase and It does not bode well for lower-income consumers who used milk powder as a substitute for the more expensive fresh milk. 


Even with this price increase, it turned out that the most familiar brand still reigned supreme in terms of market share because consumers are unwilling to change and will adjust their budgets to accommodate these price increases. 


These products should be capped or subsidized by the government as this is a basic and essential product. I may use it to make tea and drink cereal, but other people use it to make porridge for their children. This cannot be allowed to become too expensive. 


Whole Milk in a Jug, bottle and glass


Did you notice the shortage or price increase for the milk powder? Feel free to comment and let me know what you think. What do you consider to be the best milk powder on the Market? 








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