New Zealand supermarket suppliers believe consumers are getting the short end of the stick when it comes to grocery prices.
Foodstuffs (who own New World and Pak ‘N’ Save) and Countdown are doubling the prices of some products they buy off their suppliers. Forty-six different suppliers that deal with the companies say they have no power in negotiations and that every day consumers are “getting screwed”.
“It’s not even a negotiation,” one supplier told Newshub. “You’re either coming in at their terms, or you’re not coming in.”
“It’s limitless. Their power is limitless,” another said.
“It’s degrading, you know? It makes you wonder why you even bother,” one more shared.
A lettuce grower said that they sell one lettuce to a supermarket for $3, but customers would have to pay over $6 for that same lettuce in-store.
"Consumers are being ripped off,” suppliers shared. “I think it's fair they know suppliers are trying to do all they can to keep things affordable, but we can only do so much.”
"It's going to take a big dog with some big teeth, to come in and say, 'Okay, here's what we are going to do’.”
Inflation has meant that some suppliers have lost up to 25% of their profit margin. Supermarkets refuse to pay them more even though they have risen prices for consumers. On top of that, Foodstuffs make suppliers pay extra for fees such as wastage, display, merchandising, etc.
“We feel like we're paying them to do their business," suppliers said. “It means your efforts are not being realised through to the consumer. They're being eaten up by the retailer.”
Countdown said they are doing everything they can to keep their products cheap.
“Our absolute priority remains making sure the food on our shelves is as affordable as possible for our customers,” they told Newshub.
