School milk makes a return

To test logistics of the programme, the co-op will commence during the first term of 2012, covering 110 schools and 14,000 children in the region. Results from the Northland pilot will be monitored during the first three terms of the 2012 school year with the intention of progressing with a nationwide programme for the start of the new school year in 2013.

Launching the programme in Auckland today, Fonterra chief executive Theo Spierings says the programme is part of its plan to make milk more affordable and more available to all New Zealanders.

The co-op is reviewing the price of milk in New Zealand. It has announced a pilot programme to sell milk through its rural retail arm, RD1 Ltd.

Fonterra wants to more New Zealanders drinking more milk because it is important for basic nutrition, says Spierings.

"To achieve this, we have to make it available and affordable.

"In recent years we have seen a major lift in international dairy prices which effectively doubled in 18 months. This has pushed up the cost of milk prices locally and we have seen consumption decline, with New Zealanders drinking less milk.

"Traditionally milk consumption in New Zealand has been increasing around 1-2% per year but it is currently declining by a similar rate.

"We are exploring a range of options to turn around the consumption decline by making milk more consistently affordable and will report back in the first quarter of next year."

Fonterra's Milk for Schools programme has been welcomed by Manaia Health, a health service provider in Northland.

Manaia Heath chief executive Chris Farrelly, one of the architects of a campaign against soaring milk prices, says the move is "one of the most significant acts a corporate body has done for the wellbeing of New Zealand children".

"When we started this campaign our focus was on how vital milk was for children's health and development. Milk provides essential energy, protein, fats, vitamins and minerals. Providing free milk to children in school will ensure that it becomes a fundamental part of all our children's diets and no longer a luxury for some," says Farrelly.

"We are delighted that Fonterra has decided that the Milk for Schools programme will start in 110 Northland primary schools."

Spierings says for some New Zealanders the initiative will bring back memories of the Government programme which operated in New Zealand primary schools between 1937 and 1967. We'll ensure this time that the milk is cold and tastes great.

"We know milk offers a unique combination of nutrients which are essential for children's growth and development."

He refused to say how much it will cost Fonterra. The co-op will welcome support from other partners for a nationwide programme, including the Government. However, Spierings says it is prepared to go alone if the Government and other parties say no.