Food Inflation Steadied by Foodstuffs: Rising Tomato Prices Amid Import Ban
Sourse: dairynews.today
Foodstuffs manages to keep retail price increases below the average despite global pressures, with tomatoes seeing a significant rise due to an import ban.
New Zealand's food price inflation stands at 4.4% as reported by Stats NZ for May 2025, while Foodstuffs records a lower 3.2% increase for its basket of products. This is partly due to the rise in global prices for key commodities like butter, cheese, beef, and lamb. Butter prices have increased by 55%, attributed to a global supply constraint since late 2023. Despite this, Foodstuffs is maintaining competitive pricing, sometimes selling butter at a loss. Meat prices are also surging, with beef steak up 25% and lamb leg roasts up 23%, driven by high demand and a decline in New Zealand's national herd.
Consequently, Foodstuffs is temporarily importing more Australian beef. In produce, a notable increase is seen in tomato prices, soaring 30% year-over-year, impacted by a continuing ban on Australian imports due to the brown rugose virus threat. This protective measure, though limiting supply, aligns with efforts to support domestic growers. "The situation illustrates how New Zealand's retail sector must navigate global market influences while leveraging its scale to provide value," notes Foodstuffs NZ Managing Director Chris Quin. The company underscores the strategic importance of having NZ-owned retailers capable of competing in international markets to manage supply and price fluctuations.
Consequently, Foodstuffs is temporarily importing more Australian beef. In produce, a notable increase is seen in tomato prices, soaring 30% year-over-year, impacted by a continuing ban on Australian imports due to the brown rugose virus threat. This protective measure, though limiting supply, aligns with efforts to support domestic growers. "The situation illustrates how New Zealand's retail sector must navigate global market influences while leveraging its scale to provide value," notes Foodstuffs NZ Managing Director Chris Quin. The company underscores the strategic importance of having NZ-owned retailers capable of competing in international markets to manage supply and price fluctuations.
