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‘Ridiculous’ food prices under watch of grocery commissioner

The Wānaka App

Maddy Harker

12 July 2023, 5:00 PM

‘Ridiculous’ food prices under watch of grocery commissionerA new grocery commissioner will focus on levelling the playing field and increasing competition in the grocery industry.

The country’s first grocery commissioner has been appointed in the latest move by the government to try to improve competition in the supermarket sector and reign in excess profits. 


Since a March 2022 Commerce Commission study into New Zealand supermarkets found they were earning up to $1M a day in excess profits, the government has made a number of changes to boost competition - including unit pricing, a grocery supply code, and requiring major retailers to offer wholesale offerings - but grocery prices are still rising fast.



Stats NZ data released in April showed food prices in New Zealand increased by an average of more than 12 percent year on year, with some of the the biggest increases in staples like fruit and vegetables (up 22 percent), eggs (up 63 percent) and yoghurt (up 21.7 percent).


Around the same time, local social worker Heather Clay told the Wānaka App the cost of food is among some locals’ biggest financial worries.


Some of the vegetable prices at New World Three Parks on Tuesday. The cost of fruit and vegetables increased 22 percent between April 2022 and April 2023.


Another resident, who now has to shop more carefully to keep her family of four well-fed, called prices “ridiculous”.


Read more: Cost of food a top concern for locals


The appointment of Pierre van Heerden as New Zealand’s grocery industry regulator will benefit Kiwi consumers, Commerce and Consumer Affairs minister Dr Duncan Webb said.



“As the global cost of living crisis continues to put pressure on families, his appointment is a significant one to hold the sector to account,” Duncan said. 


“An important focus of the grocery commissioner will be in levelling the playing field and ensuring increased competition in the grocery industry, and for the benefit of Kiwi consumers.”


Groceries have recently “rocketed up the list of households’ financial concerns” and the appointment of a grocery commissioner is an important step to introduce fairness and transparency in the sector, Consumer NZ CEO Jon Duffy said.


Pierre told RNZ’s Morning Report this was a "once-in-a-generation opportunity" to make a difference.


His appointment has been celebrated by groups such as Consumer NZ. 


“This is an important step in the lengthy process required to introduce fairness, improved transparency and, ultimately, improved competition into our grocery sector,” Consumer NZ CEO Jon Duffy said. 



“Over the past year and a half we've watched sentiment towards the cost of groceries significantly change, rocketing up the list of household financial concerns. It's imperative we have a grocery sector that is fair and transparent.”


Pierre will begin his role as grocery commissioner today (Thursday July 13).


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