Tuesday 15 November 2011

One cost of US dairy protectionism

One tangible cost of American dairy protectionism: baby formula prices.

In New Zealand, 900 grams of Heinz Infant 1 Gold Starter Formula costs $23.60 at Countdown. In $US terms, that's $20.68/kg. I often saw it for around the $18 mark on special when we were in that market.

In the US, the best comparison I can find is a 35 oz can of Enfamil at Safeway: $33. That's about a kilo. And, it's about the cheapest dry formula I can see on the Safeway site on a per ounce basis.

I can think of few other goods where the real New Zealand price is two thirds of the US price. Maybe the US formula has some kind of magic to it where it can make larger quantities of reconstituted drink, but I'd be a bit surprised.

Does American policy really wish to transfer money from poor mothers buying formula to relatively wealthy members of the dairy compacts?

Meanwhile, in Canada, The Real Canadian Superstore will sell you 730 grams of store brand formula for $15: $25.70 NZ per kilo. But I'm not sure that a sale flyer price of a store brand is a fair comparison.

1 comment:

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