New Zealand vegetable growers warn of risks from supermarket reforms
Food security and supermarket operations have become a key election issue amid the rising cost of living and food prices. The National Party plans to break up the Foodstuffs company if it wins the election, but will first conduct a Commerce Commission inquiry. The Labour Party intends to tackle price gouging, while the Green Party proposes establishing a state-owned "KiwiMart" network.
New Zealand Vegetable and Produce Growers Federation (NZVC) Chief Executive Mike Brown stated that vegetable growers are operating on minimal margins. Growers' profits are insufficient for sustainable business operations, which, in the event of enterprise closures, could lead to reduced supply and higher prices for consumers. At the same time, Brown noted that vegetable prices have not increased as much as other goods, indicating extremely narrow margins for producers when dealing with supermarkets.
Vegetable growing involves high risks due to weather dependence, as the industry experienced firsthand following the impact of Cyclone Gabrielle. Other challenges include energy prices, regulatory requirements, the repeal of the Resource Management Act, development on fertile land, and competition from cheaper imports.
An additional challenge for the industry is access to gene-edited seed. Following the European Parliament's adoption of regulations permitting such plants without foreign DNA, foreign seed suppliers may focus on EU needs, leaving New Zealand off import maps. In this regard, the organization points to the need for regulatory adjustments to ensure access to seed essential for the survival of producers. Furthermore, NZVC advocates for a bipartisan national approach to vegetable production within the framework of resource management reform to address food security issues and calls for transparency across the entire supply chain.