2011 Annual Report - The Commerce Commission

4.7 Ex-factory Wholesale Price of GheeGhee is locally packed by Fiji Foods Ltd and Punja & Sons Ltd. Ghee prices were reviewed once in 2011. Messrs Fiji Foods Limited made its submissionstating that the existing ex-factory price of ghee was below product cost and this prompted the company to request for a price review. Upon the receipt ofthe submission, the Board with the approval of the Minister granted a 10% - 11% increase in ex-factory wholesale price of ghee. The prices came intoeffect on 4 th April 2011 as shown in the table below.Table: 22 Ex-factory Wholesale Price of GheeGoods/Quantity Ex-factory wholesale Delivered price exclusive of VATGhee $ C30 x 500ml $196.3220 x 750ml $192.5825 x 750ml $240.729 x 2litres $230.5312 x 2litres $307.316 x 4litres $298.781 x 210kg $2869.88On 23 rd September 2011, upon the approval of the Minister, ghee was removed from price control via the Commerce (Price Control) (Ghee) (Ex-FactoryWholesale Price) Revocation Order 2011.4.8 Retail Butter PricesUpon the receipt of costing and documentary evidence from Rewa Cooperatives Dairy, the Board with the approval of the Minister granted the companyan increase in the prices of Butter. The increase also reflected the global market behavior concerning dairy products since the end of last quarter of2011. The retail prices had increased by 24% in this review. There were two reviews in 2011.The First review was done in May 2011. The prices came into effect on 20 th May 2011. In July 2011, a second review was done by the Commission. Thisshowed a decrease in retail prices by 2%. The prices came into effect on 18 th July 2011 as shown in the table below:Page220of236