Take Five: What we've learnt about the cheapest prices of food

Thursday, 2 June 2022

We hunt for New Zealand's cheapest – and most expensive – grocery items.

Over the last four days, we have been searching for the cheapest grocery items across Aotearoa.

In conversation with readers on our live blog, and via reporting from teams around the country, we've looked at everything from the price of cheese to how much we are paying for toilet paper.

Stats NZ’s Food Price Index shows the cost of food has risen by 6.4% compared to this time last year, and there is no sign of an end to the climb.

Here’s what we’ve found in our hunt for the cheapest day-to-day grocery items.

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Bananas for 99c can be found at green grocers.

1) Where are you getting the best bang for your buck?

Shopping for eggs, fruit and veges is better done at a greengrocer or speciality supermarket, rather than the main chains.

Readers, particularly from the South Island, said they were able to get a 1kg bunch of bananas for as little as 99c in some grocers, while at supermarkets they are at least $2.50.

Pak ‘n Save offered the cheapest prices for most products we looked at over the past four days, including blocks of cheese for less than $10, butter for $7 and toilet paper for $2.30.

2) What towns are the losers when it comes to paying the most?

The exact same brand and size of eggs that cost $5.85 at New World St Martins in Christchurch cost $8.69 at New World Waihi.

The shops are both part of the Foodstuffs co-operative, with the same commitment to rolling back the price, but yet some customers were paying $3 more because of their location.

3) What is up with The Warehouse having cheap butter?

So, it seems like everyone has heard about The Warehouse selling a 500g block of Tararua butter for $4, but no-one can get their hands on it.

This same block of butter is $7 at an Auckland Pak ‘n Save, $7.49 at New World, and $8.30 at Countdown.

The Warehouse chief executive Nick Grayston joined the conversation. He said butter availability should improve from this week as the company worked to get more stock.

“In terms of pricing, all companies must make choices about where to pass on costs to customers or increase margins and at The Warehouse, we are taking steps to offer the best prices we can on items we see as essentials,” he said.

“While the cost of goods continues to increase, we’ve decided to hold or drop prices where we can across key grocery and pantry items.”

4) What is affecting the cost of food at the moment?

Inflation, supply chain issues, the Ukraine and Russia conflict, challenging growing conditions overseas and lack of competition are all affecting the price we pay at the checkout.

The Government says it will ‘urgently pursue’ options to generate more competition in the supermarket sector.

The quality and quantities of crops produced could vary hugely depending on how dry it was, whether frost had hit at the wrong time, and whether a hailstorm had rolled through.

The increase in the price of fresh fruit and vegetables over the past year pointed to how bad the weather had been for growing.

Growers have also complained of labour shortages.

The cost of dairy products has been on the rise quickly. Cheese is up 18.3% in a year and milk up 8.5%.

Meat and dairy are NZ’s biggest exports with 95% of our dairy products sold internationally, which affects what we pay.

5) How is the Government looking to remedy this?

On Monday, Finance Minister Grant Robertson and Commerce and Consumer Affairs Minister David Clark announced the supermarket sector was in for major shake-up 'at pace'.

The Government will introduce an industry regulator, a mandatory code of conduct, compulsory unit pricing and require more transparent loyalty schemes.

It is also removing covenants on land, which means international chains can move into the market easier, providing better competitive prices for consumers. Supermarkets will be required to open their wholesale functions to competitors.