Vegetable prices expected to ease
It is predicted that the monthly Food Price Index due to be released next week will show an easing in vegetable prices, with industry insiders saying the trend is set to continue as we head into winter.
That’s the message from David Smith, the new chairman of United Fresh, an umbrella body representing growers, wholesalers and retailers.
Smith doesn’t agree that fruit and vegetable prices are out of reach of many consumers. It’s all about smart shopping, he says. He points out that supermarkets run six to eight specials daily on local fruit and vegetables.
While United Fresh doesn’t dictate pricing to retailers, he believes New Zealand prices are still economical compared to Australia.
“Bananas in Australia have been priced at $10/kg for the last six months and in New Zealand you can buy a banana for 50c,” he told Rural News. “If people buy seasonal fruit and vegetables and take advantage of specials, they can feed their families economically.”
He says United Fresh is always looking at delivering fruits and vegetables in the most effective way to consumers. This is being done while supply chain costs like internal freight, cool storage and quality control are on the increase.
At the same time, he says changes in the way people shop are also important. Online shopping and farmers markets make the retail business complex.
Horticulture New Zealand has come under fire from consumers for high fruit and vegetable prices. But it says supermarkets increase margins based on their costs.
Smith says United Fresh doesn’t discuss pricing at its meetings for commercial reasons.
United Fresh, which recently celebrated 20 years of service to the produce industry, includes the two big supermarket chains Progressive and Foodstuffs as well as HortNZ. It represents an industry valued at more than $5 billion with more than 60 fresh products, providing 50,000 jobs and exporting to more than 120 countries.
Smith believes that the organisation has achieved significant milestones during its 20-year history. He says it is unusual to have powerful players like Progressive and Foodstuffs along with wholesalers and growers all at the same table, making decisions and acting in the best interests of the industry and ultimately the consumer.
“That’s been a big challenge, but we have got there, and I’m very proud of the industry’s achievement,” he says.
Smith says the 5+ A Day programme, launched 16 years ago, has been an outstanding success. The 5+ A Day message is now taught to more than 500,000 primary and intermediate school students. The programme is highly respected internationally.
He says that while other countries have similar 5+ A Day programmes operating; New Zealand’s is one of the few to be entirely driven by the produce industry. In addition, United Fresh supplies 100,000 pieces of fruit and vegetables to decile 1 and 2 schools each school day as part of the Fruit in Schools programme. That equates to 12 million pieces of produce each year.
“We are actually working in an area of public health which is very rewarding for everyone, whether they are a grower or a supermarket manager,” Smith says.
Other United Fresh achievements include; the tightening up of food safety (especially in the ‘ready to eat’/pre-prepared market), traceability issues (tracking produce from farm to consumer), standardising packaging material to increase efficiencies globally, labelling (to show country of origin) and bar coding of fruit.
Smith has replaced long-time horticultural leader, Ron Becroft who headed United Fresh for 10 years.
