Grocery Margins and Community Food Alternatives
Hayden made this Official Information request to Commerce Commission
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From: Hayden
Dear Commerce Commission,
Under the Official Information Act , I request:
The most recent data held by the Commission on price-cost margins by product category in the New Zealand grocery sector, including fresh produce, bread, dairy, and meat.
Any analysis or assessment by the Commission of the role of community food networks, food cooperatives, or local producer direct sales as competitive alternatives to the grocery duopoly.
Any assessment of the extent to which regulatory barriers under the Food Act 2014 and Animal Products Act 1999 contribute to barriers to entry in the grocery sector — specifically, the cost of compliance for small-scale local food producers.
The Commission's estimate of the total excess profits earned by the major grocery retailers (Foodstuffs and Woolworths NZ) in the most recent financial year for which data is available.
Any analysis of the potential consumer savings that could arise from a shift of 5 to 10 percent of grocery spending toward local producer direct sales and community food networks.
Any submissions or correspondence received by the Commission from community food networks, food cooperatives, or local producer organisations regarding barriers to competition in the grocery sector.
The Commission's 2022 market study found excess profits of approximately $1 million per day. Community food networks such as the Longwood Loop in Southland and Hauora Kai in Wellington consistently deliver fresh produce at 30 to 40 percent below supermarket prices. I am establishing whether the Commission has assessed the potential for removing regulatory barriers to local food production as a competition intervention.
If this analysis does not exist, the question becomes: why not?
If any information is to be withheld, please specify the grounds under the OIA for each withheld item.
Yours faithfully,
Hayden
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