Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Grocery Market Study Report Shows Big Problems In Sector

The New Zealand Food & Grocery Council welcomes the Commerce Commission’s draft report on its market study into the grocery sector.

“This is a most thorough report that delves very deeply into all the market and competition issues concerning consumers, retailers and suppliers,” says Chief Executive Katherine Rich.

“The Commission has left no stone unturned and has compiled a meticulous and accurate reflection of the grocery market.

“The report shows there are big problems in the market, and consumers would get better prices, wider ranges, and better quality if there was increased competition.

“It accurately reflects the reality faced by many suppliers of food and grocery products to the two supermarket chains around the imbalance of power in negotiations on issues such as price, promotions, and discounts.

“The Commission’s finding that competition in the wholesale purchasing of groceries is not working well for many suppliers, and that being reliant on just two major retailers has allowed the retailers to push excess costs, risks, and uncertainty onto suppliers, with fears of delisting if they do not agree to their terms, vindicates the Food & Grocery Council’s stance.

“It also identifies the lack of competition is having a negative effect on the range of products available, the innovation open to manufacturers, and investment in the industry.

“We are heartened by the Commission pointing to two options to strengthen supplier bargaining power: a mandatory industry Code of Conduct and allowing suppliers to bargain collectively.

“We were particularly pleased the Commission concluded it would be beneficial to introduce of a mandatory code of conduct to strengthen bargaining power and prevent current conduct which reduces the ability and incentive of suppliers to invest and innovate.

“This is exactly what is needed to give suppliers something closer to a level playing field when it comes to negotiations.

“The Food & Grocery Council has been advocating strongly for these for some years, and we currently have a petition before a Parliament Select Committee calling for a mandatory code of conduct.

“Everyone benefits from a flourishing food industry where suppliers have a genuine chance to negotiate and receive fair terms, and which ultimately benefits consumers in terms of innovation and range.

“The Food & Grocery Council looks forward to working constructively with the Commission’s process and making progress on the next phase of its study.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Amazon: AWS To Open Data Centres In New Zealand

Today, Amazon Web Services (AWS), announced plans to open an infrastructure region in Aotearoa New Zealand in 2024. The new AWS Asia Pacific (Auckland) Region will consist of three Availability Zones (AZs) and join the existing 81 Availability Zones across 25 geographic AWS Regions at launch... More>>


BNZ: Consumer Card Spending Climbing Out Of Delta Lockdown

New data from Bank of New Zealand (BNZ) shows card spending is heading back towards pre-delta lockdown levels. Spending on BNZ credit, debit and Eftpos cards has bounced back over the last three weeks and is now 14 per cent below the pre-delta lockdown average... More>>

Reserve Bank: A least regrets approach to uncertainty

The Reserve Bank of New Zealand – Te Pūtea Matua makes decisions about official interest rates in a way that is robust in the face of uncertainty about the economy, Reserve Bank Assistant Governor Christian Hawkesby says in a speech published today*... More>>

Fonterra: Completes reset, announces annual results and long-term growth plan out to 2030

Fonterra Co-operative Group Limited today announced a strong set of results for the 2021 financial year, reflected in a final Farmgate Milk Price of $7.54, normalised earnings per share of 34 cents and a final dividend of 15 cents... More>>

Statistics: GDP rises in the June 2021 quarter

Gross domestic product (GDP) rose by 2.8 percent in the June 2021 quarter, following a 1.4 percent increase in the March 2021 quarter, Stats NZ said today. June 2021 quarter GDP was 4.3 percent higher when compared with the December 2019 quarter... More>>

Energy-from-waste: $350 Million Plant To Deliver Renewable Energy Considered

Investigations have begun into the viability of building an Energy-from-Waste plant that will safely convert 350,000 tonnes of waste, that would otherwise be dumped into South Island landfills annually, into renewable electricity... More>>