Chris Quin: Foodstuffs North Island CEO on the rising food prices

It's being suggested the pricey cost of our food baskets is great for the economy but bad for our wallets. 

Food inflation has risen 4.4% annually, the highest in 18 months. 

Meat, poultry and fish had the biggest increases, while butter, milk and cheese drove grocery prices. 

Foodstuffs North Island CEO Chris Quin told Mike Hosking increases in foods like Kiwifruit and butter is fantastic for New Zealand's economy, but tough for households.  

Quin says they're doing everything they can,  but they can't contain the same costs of energy and people.

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Episode Transcript

Speaker 1 (00:00):
So food price inflation spiked some. What our new numbers
have prices up four point four percent for the year
to May. That's up from three point seven and April.
It's the old favorites that have come to the party, dairy,
meat and poultry, but is up fifty one of course.
Chris Quinn's Food starts North Island CEO and is back
with us. Chris, good morning, Good morning Mike. The value
of the numbers that we saw headline wise yesterday versus

(00:20):
the cost of actually doing business? Are you guys keeping
your costs under control beyond the obvious look?

Speaker 2 (00:26):
I think the best way of explaining that is that
the stats New Zealand food price basket went up four
point four percent, as you mentioned, our retail prices for
the same period went not three point two percent. So
US working on our efficiency and us making the decision
not to pass on all of these product cost increases
to our customers is what makes that difference. So we're

(00:47):
doing everything we can, but the same cost increases for energy,
for people, for all of those things do affect every
one of our owner operator businesses.

Speaker 1 (00:56):
And are you an outlier in that in any way?
Shape will form another words as your wages, your transports,
any different from anybody else who would be passing on
some of the costs in the economy.

Speaker 2 (01:05):
At the moment, not fundamentally different.

Speaker 1 (01:08):
No, okay, So when we talk about these numbers, once
you strip out the stuff that you can avoid, once
you strip out the stuff you can explain away. Is
the price of food materially going up in a way
that we can't explain.

Speaker 2 (01:23):
I think it can be explained. That does not make
it any easier for any household who is stirring into
this alongside all the other costs. So you know the
understanding what's driving it. It's important because I guess it's
understanding the cause. And do you think people are position
with that.

Speaker 1 (01:40):
Or is just blaming you guys the easy out.

Speaker 2 (01:44):
Look. We have the privilege of serving four point one
million customers a week in terms of number of visits
we see, so the only people they can talk to
are us because we have the food on the shelf
and the price. But it is important. My butter is
probably the classic right now. It has gone up fifty
five percent in a year. That is fantastic for New
Zealand's economy, but very tough for households who are buying

(02:06):
that product. You know, we're seeing the same tomatoes. We've
got an issue in Australia where we're not allowed to
import from Australia. So I've seen a thirty percent increase
in those eighteen percent up and kew. We for it.
Another great export story, but that part of our economy
means that the basic cost of those products increases at
retail because nearly seventy percent of what makes up the

(02:27):
dollar on shelf comes from the cost of the goods.

Speaker 1 (02:29):
And there's nothing we can do. Chris, appreciate it very
much again, Chris quin, who's the food Stuffs Northland.

Speaker 2 (02:34):
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