For New Zealanders across the country who felt the pressure of the inflation rates for food throughout 2022, the new year has only compiled on the stress. Statistics New Zealand shows a 10.3 percent increase in food prices for January of 2023 compared to the previous year.
Average cost increases from suppliers to the Foodstuffs 100 percent owned and operated co-operatives, including Pak’nSave, New World, and Four Square, for the same products have been measured at 9.4 percent. For the same products, Foodstuffs and their
co-operatives have maintained prices at one percent less than the national inflation rate in January (9.3 percent) and 0.1 percent below cost increases from their suppliers.
While Statistics New Zealand is yet to release their report for February, Chris Quin, CEO of Foodstuffs, has alluded to the unavoidable cost increases that have and will occur due to the extreme weather events from the last month.
“The impacts of January’s historic flooding across the upper North Island will likely add further challenges to the inflation fight at the checkout,” commented Quin.
Cyclone Gabrielle has had devastating impacts on growers in the Hawkes Bay and Gisborne region, as well as disruptions in supply for certain imported products that could not arrive at their set destinations due to the weather, such as bananas and other fresh produce.
However, Quin stated that while the Global Market inflation rates have reached optimisation, the costs for imported products to New Zealand and continued pressures on salary and wages in a cramped labour market have remained high.
“While shipping costs are starting to ease, the handling of empty containers (charged by the shipping lines) remains elevated because of portside congestion in New Zealand, so we’re still experiencing very high costs,” says Quin.
January of 2023 was the wettest on record, with the Auckland Anniversary Floods and Cyclone Gabrielle only adding to the existing pressure on the horticulture industry. The long-term impacts of the extreme weather during critical growing season time are still to be felt.
