The Mad Butcher Dunedin owner Tony Coulston flips a $2
coin, the price of 2 litres of milk in the store. Photo by
The Mad Butcher's $1 a litre milk promotion has been a
big hit and the company is making a loss on every sale.
The Mad Butcher Dunedin owner and operator Tony Coulston said
the retail meat chain had been selling a litre of milk for $1
In the first four days of the promotion, more than 2000
litres of milk had been sold from the Dunedin store, he said.
''It's absolutely amazing - it's huge.
''It's been going really, really well.''
The store was losing money on the promotion, he said.
''It is a significant loss leader for us, but our thoughts
are that milk is a significant staple that all New Zealand
''You hear on the news that [the price for] milk solids are
down but it doesn't filter through to the consumer, so we are
thinking 'Let's take a hit on it and let New Zealand
benefit','' Mr Coulston said.
Mad Butcher stores around New Zealand are running the
The offer, for Cow and Gate 2-litre milk only, is valid until
Customers are limited to two 2-litre bottles per family per
Normally, a 2-litre container of milk at the Mad Butcher
retailed for $3.65, he said.
Federated Farmers Otago dairy chairman Stephen Crawford said
with a high payout price for milk solids, dairy farmers were
paid 70c a litre of milk produced.
The recent forecast payout would result in farmers getting
50c a litre, he said.
''The high prices consumers pay in supermarkets are not going
into the farmers' pockets.''
The milk price war was positive because it made milk more
affordable for consumers, he said.
Foodstuffs public relations director Antoinette Shallue said
some Foodstuffs stores had reacted to the competitive milk
pricing, but the company had not taken a national position.
''We know that at $1 per litre we would be losing money, as
it is well below our wholesale cost,'' she said.
Foodstuffs' brands include Pak'n Save, New World and Four
A Countdown spokeswoman said some Countdown supermarkets in
regions with Mad Butcher stores had matched the meat
retailer's milk prices.