Kiwis Unwilling To Pay Fruit And Vegetable Premiums

Dr Hans Maurer

Research conducted last year showed nearly two-thirds of Kiwi shoppers were unwilling to pay a premium for fruit and vegetables grown, picked, packed and delivered with sustainable practices.

For the country’s six billion NZD horticulture industry, keen to develop sustainable measures to protect the future of the business, that reluctance poses a significant problem.

Dr Hans Maurer, Chair of the United Fresh Technical Advisory Group, stated that the balance between increasing sustainable practices and maintaining affordability is tricky.

“We’re walking a tightrope at the moment. Shoppers are struggling with inflation, budgets are tight, but making vital changes to how we do business is just so important,” shared Dr Maurer.

Dr Maurer elaborated that United Fresh was developing a set of Sustainability Guidelines for the entire fresh produce value chain. However, the changes that the industry would want to make based on these guidelines would require investment.

The United Fresh Sustainability Guidelines would set a blueprint for how the entire fresh value chain can work towards contributing to the United Nation’s Sustainable Development Goals (SDGs). The SDGs are a set of seventeen key objectives that, if adopted worldwide, are expected to lead to a safer, more prosperous future for people and the planet.

“We are responsible for doing our best to meet the UN’s SDGs. The fresh produce industry in Aotearoa takes those responsibilities very seriously, and major work is going on to improve and strengthen sustainable practices.”

Convincing shoppers that sustainability measures are essential was part of the challenge.

Dr Maurer explained that following the pandemic, shoppers’ priorities have shifted. Health and well-being have become more critical, and fresh fruit and vegetables have become more important due to the product’s high nutrient levels. 

Convenience is also a key driver for shoppers. However, consumers have increasingly become more environmentally conscious as they have become more knowledgeable about the impact of their actions towards climate change. 

In addition to sustainability expenses, external pressures such as rising fuel and fertiliser costs, labour shortages, transport gridlock, and adverse weather conditions have seen fresh produce prices increase.

“The weather events we’ve been through in the last few months have brought home just how much our climate is changing and how urgently we need to act to bring sustainable, low-emission practices into the industry wherever possible.”

Dr Maurer stated that he hoped shoppers would support the industry's actions. However, he acknowledged that there was a role for government to consider when it came to the value fresh fruit and vegetables represented for the entire population, which Dr Maurer stated should lead to more government support for the growing community to make these positive changes affordable.