Food costs less but is still expensive

Grocery prices are falling in NZ but the supermarket duopoly takes excessive profits.

A CONSUMER watchdog has said there is little doubt Kiwis pay too much for groceries.

Speaking on Radio New Zealand, Consumer New Zealand chief executive Sue Chetwin said this was because of the"cosy" duopoly between Progressive Enterprises and Foodstuffs who account for 95 percent of the market.

The high prices have not gone unnoticed and the Dom Post reports:

The Green Party has previously called for Commerce Commission investigation into supermarket pricing practices and has claimed that some supermarkets place huge mark-ups on some produce, such as 195 percent on kumara and 286 percent on pumpkin.

This comes on the same day that Statistics New Zealand reports falls in Kiwi grocery prices. Food prices decreased 1.5 percent in the October 2009 month. This is the largest fall in three-and-a-half years.

In October 2009 compared with September 2009:

• Food prices fell 1.5 percent.


• Fruit and vegetable prices fell 4.6 percent.


• Meat, poultry, and fish prices fell 3.2 percent.


• Grocery food prices fell 0.4 percent.


• Restaurant meals and ready-to-eat food prices fell 0.3 percent.


• Non-alcoholic beverage prices fell 0.4 percent.

From October 2008 to October 2009 food prices increased 2.0 percent, the lowest rise since May 2006.

Comments

[Alan]

It was funny watching the news the other day on this, shock horror as the price of butter is due to go up 20%, because (apparently) Fonterra can't afford to 'subsidise' the domestic market. i.e. they make more profit from foreign markets. - Not that those foreign markets would buy all their butter if we stopped buying it.

Anyhow, then a later news item - Celebration! Fonterra has lifted the estimate payout for farmers by just under 20%.

And no one thinks that these are linked..! doh!

[William Knight]

Thing is, the Brits pay a lot less for NZ dairy than the Kiwis do. If what fonterra are saying is true then the supermarkets really are th profiteering culprits.

[Annna]

It is incredible!
We moved from NZ to London for a short while - and found that food in London is LESS expensive and Better quality than in New Zealand! Moreover - organic produce is quite affordable in London - whereas in NZ it is just exorbitant! And this is in the courty with a very strong agricultural sector!
Another mistery is milk and dairy product prices - in New zealand not only there is a very limited sellection of cheeses and yougurts but the prices are super high! In London we have an amazing repertoir with amazing quality and prices - the totally fascinating thing is that NZ produce In LOndon costs LESS in London than it is in NZ! I wonder what Fonterra is up to? Why New Zealanders are paying more for less in quatity and quality? That is quite surprising and upsetting about the coutry with such a great agricultural sector and traditions.

[William Knight]

Thanks for the comment, Anna.

Its so depressing. We get paid half the amount but pay twice the price for groceries and utilities. Only housing is the saving grace where rents are quite a lot lower and the cost to buy seems almost reasonable. I wonder how long that situation will last given the state of the UK housing market.

Will

[Holly]

I totally agree it is so depressing. I moved here from the UK only months ago with my NZ husband. He was so desperate to move back to NZ promising a better lifestyle....so far however I can only see a future of debt. Everything is so expensive - not just the food.
I agree that the quality of the food is a disgrace here considering the farming industry, we have decided to go vegetarian as the meat is some of the worst I have ever seen and for what you pay??? However all the other living costs as well are so over priced..electric, internet, TV, mobile phones....the list continues.
My husband is determined to make his dream of returning to his home land work but even he admits that beautiful scenery and laid back attitudes don't pay the bills, unfortunately.

[ClubPenguinCheats]

I wonder how long that situation will last given the state of the UK housing market.