Consumer NZ: More than 100 complaints made over supermarket food prices

Wednesday, 26 January 2022

The Detail explores what makes our food so pricey when we produce enough to feed 40 million people.

A six-month snapshot of prices at the country's main supermarkets shows the cost of basics such as dairy, meat and vegetables has increased.

Stuff has compared the price of an average shopping trolley using Countdown, New World and Pak n’ Save’s online tool.

A basket of 45 items was first compiled in September, with prices being re-examined on January 25.

It included common foods like blue top Anchor milk, Mainland butter, a one-kilogram block of Colby cheese, different types of fresh produce like apples, mushrooms and capsicum, beef mince and skinless chicken, pasta, rice and tinned tomatoes.

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Stats NZ’s Food Price Index showed food prices in 2021 had risen 4.5 per cent compared to 2020. (File photo)

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Chicken breast had seen a significant jump, with 1kg being up across all the big chains, averaging $12.99 compared to $11.30 six months ago. A kilogram of beef mince had dropped slightly at New World and Pak n’ Save, but had risen from $11.90 to $17.20 at Countdown.

Consumer NZ said consumers complained about food prices at Pak n’ Save the most.

Many types of fresh fruits and vegetables were also up, but this could be attributed to the change in season.

Two litres of milk was slightly more expensive too, with it increasing just over 10 cents to an average of $4.87 a bottle. Butter had risen from $6 in September to almost $6.60.

Twelve rolls of Purex toilet paper was around $6, however, this product was no longer available, with Stuff instead having to substitute it for the six-roll pack which cost $6.60.

While staples were more expensive, the overall price of each basket was slightly lower or near the same as six months ago.

But Kiwis say they are feeling the bite on their wallet, with Consumer NZ receiving more than 100 complaints about food prices at supermarkets since the 2021 lockdown.

“New Zealanders contacted Consumer NZ over the rising price of many staple products they pick up in their weekly shop,” a spokeswoman said.

People noted price increases for fresh produce – especially seasonal items like tomatoes and lettuce, eggs, and meat.

Toilet paper has run low at several points during the pandemic, due to panic buying.

This was reflected in the latest figures from Stats NZ’s Food Price Index, where it showed the price of food in 2021 has risen 4.5 per cent compared to 2020.

A Countdown spokeswoman said there were “a lot of factors” that went into the price of food, including labour and transport costs, GST, seasonality, demand and raw materials.

“Historical price comparisons can be challenging given the number of variables which contribute, including global commodity prices, foreign exchange rates, and general costs that may have changed such as labour or product specifications,” the spokeswoman said.

A spokeswoman for Foodstuffs New Zealand – which owns New World and Pak n' Save – said prices varied over extended periods, with product demand, seasonality and if the product is on or off special that week playing a role.

Countdown said while the economy was experiencing a period of higher inflation, these inflationary pressures were not unique to food as broader Statistics New Zealand CPI data shows.

“Food inflation has in fact been at a level below [consumers price index] inflation for the past decade.”

While there was ongoing pressure on supply chains due to Covid-19, Countdown was working closely with suppliers and supply chain partners to minimise these impacts, she said.

The Foodstuffs spokeswoman said the impact of the pandemic had added “complexities” to food prices which were expected to continue throughout 2022.

“We aren’t increasing prices as a direct result of lockdowns, or traffic light system changes, we haven’t before and we won’t now,” she said.

Consumer NZ said complaints were made against all three of the major supermarket chains, as well as smaller players such as Fresh Choice and Super Value.

Pak n’ Save was complained about the most regarding rising prices, closely followed by Countdown where people said price discrepancies were “frustrating”.

New World had a lower number of complaints, but consumers said they had issues with a lack of display prices in store.