Key Takeaways:
- Food prices in New Zealand are significantly higher compared to Europe, with prices for staples like chicken, salmon, and mozzarella being 2-3 times more expensive.
- The surge in food prices is attributed to global supply chain disruptions, post-Covid-19 pandemic inflation, increased export demand, and higher production costs.
- Critics argue that New Zealand’s supermarket duopoly plays a significant role in limiting competition and keeping prices elevated.
- The lack of competition and high prices are affecting not only low-income families but also middle-class families who are struggling to make ends meet.
- There is a need for systemic change and creative solutions to address the issue of high food prices and promote self-sustainability.
Introduction to the Issue
The issue of high food prices in New Zealand has been a topic of concern for many, with prices for staples like chicken, salmon, and mozzarella being significantly higher compared to Europe. Kirsten Holtz, a New Zealand resident, was shocked to discover the huge price difference during her trip to Europe, where she found that pork bones were much cheaper, and lamb was selling for €7, which is approximately $14, compared to $50 back home. This experience was a wake-up call for Holtz, who realized that New Zealanders are being short-changed when it comes to food prices.
The Causes of High Food Prices
According to official sources, the surge in New Zealand’s food prices during the past five years has been driven by global supply chain disruptions, post-Covid-19 pandemic inflation, increased export demand, and higher production costs, particularly for dairy and meat. However, critics argue that New Zealand’s entrenched supermarket duopoly also plays a significant role in limiting competition and keeping prices elevated. The Commerce Commission and Consumer NZ have both highlighted the duopoly’s impact on pricing and supplier dynamics. Holtz too lays the weight of the blame on the two predominant supermarket chains, stating that they are pushing up prices and limiting competition.
The Impact on Families
The high food prices are affecting not only low-income families but also middle-class families who are struggling to make ends meet. Holtz, who has a decent income, is concerned about the impact of high food prices on her family members who are not as fortunate. She challenges the quality of the food on offer in New Zealand supermarkets, stating that the food is often of poor quality, with avocados that are rotten inside, lettuce that lasts only two days, and onions that are brown in the middle. In contrast, she notes that in Europe, the best produce is sold locally, and the rest is exported.
Grassroots Solutions
Holtz has long championed grassroots solutions to address the issue of high food prices. She promotes ideas such as growing potatoes in cardboard boxes, propagating herbs on the porch, pooling resources with wider family or neighbors to buy in bulk, and accumulating funds throughout the year on a Christmas savings card. Her $5-a-week pantry challenge encourages followers to stock up on staples year-round, easing the financial pressure of Christmas. However, she admits that these strategies are starting to feel like survival tactics in a broken system, and that there is a need for systemic change.
The Need for Systemic Change
Holtz is considering teaming up with organizations that are already fighting against the supermarket duopoly to drive systemic change. She believes that there needs to be a serious push to address the issue of high food prices, as the stakes are too high to stay silent. While she continues to encourage families to plan ahead, grow what they can, and make the most of community gardens, she recognizes that these efforts are not enough to address the root cause of the problem. As she looks to 2026, Holtz is considering how to use her platform to drive systemic change and promote self-sustainability.
Conclusion
The issue of high food prices in New Zealand is a complex one, with multiple factors contributing to the problem. While grassroots solutions can provide some relief, there is a need for systemic change to address the root cause of the issue. Holtz’s experience in Europe has highlighted the need for New Zealand to re-examine its food system and promote self-sustainability. By working together and driving systemic change, it is possible to create a more equitable and sustainable food system that benefits all New Zealanders.
