Tuesday, 08 March 2022 15:55

Hort industry supports Commerce Commission's supermarket recommendations

Written by  Staff Reporters
Horticulture New Zealand chief executive Nadine Tunley. Horticulture New Zealand chief executive Nadine Tunley.

Horticulture New Zealand (HortNZ) says fruit and vegetable growers who supply the domestic market have welcomed the Commerce Commission’s recommendations following its investigation into supermarkets.

“The industry is pleased to see the Commerce Commission is recommending actions that would improve the relationship between growers and grocery retailers,” says HortNZ chief executive Nadine Tunley.

“These actions include a compulsory supplier code of conduct, the prohibition of unfair contracts and a disputes resolution scheme. If implemented, these recommendations would help reverse the imbalance of power that the commission identified in its investigation.”

Tunley says the improved relationship, accompanied by greater transparency, should ensure growers get a better return on their investment, ensuring they continue to invest in fruit and vegetable growing.

“The greater transparency should also enable consumers to understand better the price they pay for New Zealand-grown fruit and vegetables,” she says.

Tunley says grower returns have not increased for at least a decade.

“However, retail prices and costs - labour, freight and compliance - have steadily increased [see Farm share of retail prices, NZIER report, August 2019]. In addition, Covid has brought about further, more recent, steep cost increases.

“New Zealanders have a stark choice. If we want to eat fresh, healthy New Zealand-grown vegetables, we must be prepared to support the New Zealand growers who grow them. Otherwise, New Zealand will have to start importing more frozen and canned vegetables.”

She says seasonality and the weather play a In the winter, prices are higher because it is far more difficult and expensive to grow produce.

“Right now, some vegetable prices are higher because there’s a shortage, partly due to wet weather in December and again in February preventing growers from planting for up to three weeks. Right now, growers are struggling to plant, pick and pack due to the labour shortages that Omicron is creating significant role in the prices of fruit and vegetables.”

More like this

HortNZ levy vote looming

Commercial fruit and vegetable growers are being urged to their say in the upcoming levy referendum to enable Horticulture New Zealand (HortNZ) to continue its work for the sector.

Featured

Feds make case for rural bank lending probe

Bankers have been making record profits in the last few years, but those aren’t the only records they’ve been breaking, says Federated Farmers vice president Richard McIntyre.

National

Levy approval sought

A series of apple and pear grower meetings are being held around the country.

Machinery & Products

Success for Argo tractors

The judges at last year’s Agritechnica event picked the Italian-built Landini Rex 4-120GT Robo- Shift Dynamic as the Best of…

Pollution into fertiliser

While the new government is sure to “tinker” with the previous administration’s emissions policy, a recent visit to New Zealand…

Smart money backs smart machine

Marlborough-based start-up SmartMachine claims its new machine is one of the most significant operational step changes for viticulture since the…

Robo packer hits a billion

New Zealand inventor and manufacturer Robotics Plus Limited’s fruit packing robot has hit a major milestone of one billion pieces…

» Latest Print Issues Online

The Hound

Wrong, again!

OPINION: This old mutt well remembers the wailing, whining and gnashing of teeth by former West Coast MP and Labour…

Reality check

OPINION: Your canine crusader gets a little fed up with the some in media, union hacks, opposition politicians and hard-core…

» eNewsletter

Subscribe to our weekly newsletter