I've heard a similar thing - that explains why we pay an apparently high price in NZ, but it doesn't explain to me why it's significantly cheaper in the UK. I can't see why the price here doesn't raise to this alleged international price as well.
In most countries milk production is heavily subsidised or price controlled as it produces measurable health benefits to children.
In New Zealand this is not the case - farmers don't get direct subsidies, though they do have a novel tax system around stock management. Even with this they can produce milk significantly cheaper than we pay, but Fonterra's essentially a monopoly and isn't strongly regulated, so we end up paying a lot more than other countries.
