Grocery Margins and Community Food Alternatives
Hayden made this Official Information request to Commerce Commission
Currently waiting for a response from Commerce Commission, they must respond promptly and normally no later than (details and exceptions).
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
From: Commerce Commission OIA Requests
Commerce Commission
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E: [2][Commerce Commission request email]
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From: Commerce Commission OIA Requests
Commerce Commission
Kia ora Hayden
The Commerce Commission (the Commission) acknowledges receipt of your
Official Information Act (OIA) request dated 27 February 2026 for the
following information:
“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.”
We confirm the request has been logged as OIA 25.187.
We will be in touch with a decision by no later than 27 March 2026.
If we need to clarify further, we will be in touch with you shortly.
If consultation or notification with third parties is considered
necessary, we will advise them that the requester is a member of public in
accordance with the [1]Ombudsman's Guidance set out on page 7.
If you need to get in touch with us, you can reply to this email or
contact us at [2][Commerce Commission request email].
Ngā mihi
Payal
Payal Padhya [3](she/her)
Governance Adviser
Commerce Commission | Te Komihana Tauhokohoko
44 The Terrace | PO Box 2351 | Wellington 6140 | New Zealand
[4]comcom.govt.nz [5]X [6]Facebook [7]LinkedIn
-----Original Message-----
From: Hayden <[FOI #33882 email]>
Sent: Friday, 27 February 2026 4:18 pm
To: Commerce Commission OIA Requests <[Commerce Commission request email]>
Subject: Official Information request - Grocery Margins and Community Food
Alternatives
[You don't often get email from
[8][FOI #33882 email]. Learn why this is
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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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