Tuesday, 18 April 2023 14:55

Food Price Index reflects stormy weather

Written by  Staff Reporters
According to Stats NZ, the food price index rose 12.1%, with fruit and vegetables up 22%. According to Stats NZ, the food price index rose 12.1%, with fruit and vegetables up 22%.

The March Food Price Index shows another month of disruption to New Zealand’s fresh produce industry off the back of a challenging summer, says United Fresh.

According to Stats NZ, the food price index rose 12.1%, with fruit and vegetables up 22%.

United Fresh president Jerry Prendergast says the supply and demand model of the fresh produce industry means price fluctuations are unavoidable.

“Growing fresh fruit and vegetables is a complex and high pressure undertaking with a lot of variables,” Prendergast says. “Fruit and vegetables are exposed to the elements, that’s what gives out produce that delicious flavour and high nutrient level. But this also means we’re vulnerable to adverse weather.”

He says weather damage, like what has been seen over the past few months, means a reset of the whole growing process which takes three to four months for crops such as carrots, potatoes and cauliflower.

“If prices are high, that’s because demand is high, and stock is low – which is why we always advise shoppers to buy fresh fruit and vegetables that are in season. If you’re buying a summer favourite, such as tomatoes in late autumn, it’s going to cost more than it would in January.”

However, Prendergast says, the Food Price Index doesn’t tell the whole story of fruit and vegetable pricing.

He says the index uses a standardised ‘basket’ of goods.

“This doesn’t take into account the specials and seasonal pricing that are unique to the fruit and vegetable market,” he says. “Shoppers that take advantage of those seasonal prices will find their costs have not risen nearly as much as the Food Price Index would suggest.”

As growers clean up their orchards and replant, the fresh produce market will soon see a return to regular trading conditions, but Prendergast warns that long-term challenges remain.

“Like every other industry, we’re still battling the high costs of fuel and fertiliser and the shortage of labour,” he says.

“While everyone is looking hard at cutting costs as much as possible, we can’t avoid passing some of that expense on.”

More like this

It's all about economics

OPINION: According to media reports, the eye-watering price of butter has prompted Finance Minister Nicola Willis to ask for a 'please explain' from her former employer Fonterra.

Cows down

OPINION: It's not happening as fast as the greenies would like - they actually want all livestock other than Muscovy ducks and Tibetan Llamas to disappear entirely - but it is happening.

Eating more fruit and veg 'helps the economy'

A new international study serves as a stark warning for New Zealanders: our health and wellbeing are in our hands, and increasing our intake of fruit and vegetables is a key step to reducing the pressure on our healthcare system.

Fresh fruit, veg exports to top $3.4b

New Zealanders ate over $1 billion of potatoes last year, Taiwan is consuming more than $44m worth of New Zealand cherries, and Royal Gala apples are our most popular apple export variety, comprising almost 22% of apple exports.

Featured

Fencing excellence celebrated

The Fencing Contractors Association of New Zealand (FCANZ) celebrated the best of the best at the 2025 Fencing Industry Awards, providing the opportunity to honour both rising talent and industry stalwarts.

B+LNZ launches AI assistant for farmers

Beef + Lamb New Zealand has launched an AI-powered digital assistant to help farmers using the B+LNZ Knowledge Hub to create tailored answers and resources for their farming businesses.

National

Machinery & Products

Tech might take time

Agritech Unleashed – a one-day event held recently at Mystery Creek, near Hamilton – focused on technology as an ‘enabler’…

John Deere acquires GUSS Automation

John Deere has announced the full acquisition of GUSS Automation, LLC, a globally recognised leader in supervised high-value crop autonomy,…

Fencing excellence celebrated

The Fencing Contractors Association of New Zealand (FCANZ) celebrated the best of the best at the 2025 Fencing Industry Awards,…

» Latest Print Issues Online

The Hound

A step too far

OPINION: For years, the ironically named Dr Mike Joy has used his position at Victoria University to wage an activist-style…

Save us from SAFE

OPINION: A mate of yours truly has had an absolute gutsful of the activist group SAFE.

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter