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Time for NZ's supermarket chains to front up on their mark-ups

Green Party

Monday 5 July 2010, 4:40PM

By Green Party

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New Zealand’s two biggest supermarket chains should reveal the mark-ups they put on fresh food and vegetables, Green Party Consumer Affairs spokesperson Sue Kedgley said today.

A Green Party survey of 75 New Zealand fruit and vegetable growers found that supermarkets are making huge mark-ups of up to 500% on fresh food and vegetables. Since the survey was released supermarket owners have refused to reveal what mark-ups they make citing “commercial sensitivity”.

“It’s simply not credible for supermarket owners to quibble with the figures in our survey then refuse to to tell the public what these mark-ups actually are,” said Ms Kedgley.

“New Zealand’s supermarket duopoly needs to listen to the complaints from growers in our survey.
“Many growers claim they are going out of business because of being forced to sell fresh produce for less than the cost of production.

“It is simply unsustainable for the future of New Zealand’s agriculture industry for supermarkets to drive prices down to the point that many growers are selling below the cost of production.”

Ms Kedgley was also concerned by Consumer Affairs Minister Heather Roy’s siding with the supermarket bosses over the needs of New Zealand supermarket shoppers.

“If the Minister of Consumer Affairs takes issue with the sample size of our survey then perhaps she should immediately institute her own wider survey,” said Ms Kedgley.

“Heather Roy should be going in to bat for the New Zealand consumer not the supermarket chain owner.”
Sue Kedgley is also calling on supermarkets to explain why liquor appears to be is sold at the lowest possible price and is frequently discounted while exorbitant prices are charged on fresh food & vegetables.

Green party Growers survey facts and figures:
http://www.greens.org.nz/misc-documents/green-party-growers-survey-facts-and-figures
Green party survey graphs
http://www.greens.org.nz/misc-documents/growers-survey