Countdown received four times the number of cost increase requests from suppliers in August 2022 versus the same month the year before. Requests ranged from a one percent increase to a 72 per cent increase and averaged at eight percent; meat (+12.2 percent), fresh produce (+12.9 percent) and bakery items (+9.6 percent) were the main drivers.
“We pay our growers and farmers market prices for meat, dairy, fruit and vegetables, so higher international and local prices are reflected in what customers are paying for their food at the checkout. Compounding this, a large portion of the products Kiwis rely on are imported from overseas, such as bananas, flour, pasta and toiletries. Inflation on imported products is roughly double that of local products,” said Steve Mills, Countdown’s Commercial Director.
“We understand the genuine cost pressures suppliers are under, whether that’s input costs like grain, fertiliser and freight, or domestic factors such as labour shortages and increased wage rates. However, we also know that our customers are facing higher cost of living pressures from all parts of the economy, not just groceries. Our job remains focused on balancing all the different pressures and costs we are experiencing to provide the best value we can.”
