Supply chain costs behind NZ supermarket mark ups

New Zealand vegetable and fruit growers are backing a call for an investigation into supermarket prices while retail marketers deny they are placing huge markups on fresh produce. MP Sue Kedgley said yesterday a survey of 75 growers found supermarkets were marking up produce by up to 500 percent. Food and Grocery Council chief executive Katherine Rich denied that saying she didn’t believe supermarkets were ‘ripping anybody off’.

Ms Rich said it wasn't fair to compare the prices growers received with supermarket prices, as there are a lot of costs that are incurred throughout the supply chain. Horticulture New Zealand (HortNZ) said there should be an investigation.” Growers are not getting paid any more for produce than they were five years ago," said chief executive Peter Silcock. Mr Silcock said an investigation would explain where the costs were in the supply chain, and where the profits were going.

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