Cost of living: Food cost hike puts pressure on struggling families

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Cash-strapped shoppers are giving up on fresh fruit, vegetables and meats, and parents are struggling to buy healthy food to fill kindergarten and school lunch boxes.

Food prices jumped 12.1% in March compared to the same period last year, the biggest annual gain in more than 30 years, according to Stats NZ figures released on Monday.

Jenna Berry, a Christchurch mother of two, says the ‘ridiculous’ cost of fresh food has forced her to sacrifice meal times to ensure her children eat well.

“I’m a single mother of two and I’m struggling. I’m actually eating less so I can eat decently,” she said.

Berry used to save money by buying meat in bulk, shopping at local fruit and vegetable stores, and eating home-grown produce, but found healthy lunches for her kids. It is becoming increasingly difficult to prepare

“My children’s kindergartens and schools are very strict about the food they put in their lunches, but the food they’re trying to put us in is so expensive that it’s cheap, junk food, and that’s because it’s cheap. ‘ she said.

“They literally turn around and tell the kids that they can’t eat it in Kindy, it’s a home treat. We’re here.”

The Stats NZ Food Price Index shows grocery prices up 14% year-on-year, driven by the prices of eggs, potato chips and six-packs of yogurt.

Fruit and vegetable prices rose 22%, led by tomatoes, potatoes and avocados.

Christchurch shopper Olivia Bobby said grocery price hikes have left her and her partner unable to afford fresh fruits and vegetables.

“We have to get frozen food. It’s crazy,” she said.

“Sometimes I have to go to the food bank because I can’t afford to go to the supermarket.”

Bovey said he only ate meat when he won a $50 pack in a Thursday night pub raffle, and sometimes it was cheaper to take it home than to cook it at home.

Many argue that supermarket profits are causing food prices to rise, while others point to rising production costs for suppliers and bad weather ruining crops.

Damage from Cyclone Gabriel has pushed Coomara’s supply and price up to around $11 per kilogram, more than double the price this time last year.

Dargaville kūmara grower Andre de Bruin spoke to RNZ while he was harvesting his subterranean flood-damaged paddock.

“Twenty to 25% of normal tonnage will come out of a particular paddock.

“This is no ordinary harvest. I call this a rescue job.”

De Bruin said it was unclear how much coomara could be used for winter storage as some of the crop could rot.

He said Kumara would be languishing on the ground until next February.

“The rising price reflects that there is scarcity. You can’t manufacture what you don’t have.”

Jerry Prendergast, president of United Fresh, said some vegetables, like cauliflower, are falling in price.

“I respect the fact that maybe even $5 isn’t right for some people. Some people pay $5 for a cup of coffee, so it’s kind of relevant.

“When you look at the value per gram, it makes sense. The days of $2 and $3 cauliflower are over, $5 cauliflower is the future.”

Prendergast said producers are still battling high fuel and fertilizer costs and labor shortages and will inevitably pass on some of the costs to consumers.

“The principle of supply and demand applies to agricultural commodities. When there is demand and there is a shortage of supply, the price of agricultural commodities rises.

“Will it push people away in the future? I want New Zealand consumers to be really flexible. Don’t buy if it’s too expensive. There are still some really good buys out there.”

Payments to grocery suppliers in March were 10.3% higher than a year earlier, according to information provided by Foodstuffs to economic consultancy Infometrics.

Chris Quin, managing director of Foodstuff North Island, told The Morning Report on Tuesday that the company held off price hikes for customers below the food price index and higher costs for suppliers in March.

“Our product costs have gone up about 12.8%. 9.5% increase,” he said.

Quin said Foodstuffs has noticed shoppers switching to chilled and frozen products, with research showing that about 44% of customers are looking for cheaper brands.

In its final report on the $22 billion grocery industry, released in March 2022, the Commerce Commission estimated that Foodstuffs and Countdown were making $430 million in excess profits per day.

The food industry competition bill currently before Congress includes a new code of conduct for dealing with suppliers, requirements for large chains to wholesale their products to competitors, and the establishment of a food commissioner. increase.

A spokesperson for Countdown was not available for comment.