Federated Farmers again defends price of milk in NZ

Federated Farmers is again defending the price of milk in New Zealand, following claims it's cheaper in Australia.

The group's Dairy spokesman, Lachlan McKenzie says the only reason Australians are currently paying less than New Zealanders is because of a supermarket price war.

He reckons last month the Coles chain was underwriting its milk by up to half a million New Zealand dollars a week.

Mr McKenzie says the milk war can't go on for ever, and Australian consumers will end up paying much higher prices in the future.

- Newstalk ZB