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

Soaring food prices might be hard to swallow. 

Stats NZ figures reveal prices rose 3.7% annually last month, with increases across all food categories. 

Butter prices increased 65.3%, milk and cheese went up 15.1% and 24% respectively. 

Foodstuffs North Island CEO Chris Quin told Mike Hosking there's pressure on products we're getting export success from. 

He says it's a fantastic part of the story, but the impact on consumer is clear. 

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Episode Transcript

Speaker 1 (00:00):
Right, the headline number is a problem, but can it
be explained away to a degree? Food prices have spiked
three point seven percent for the year, well above inflation,
so warp warp problem, devil in the detail. Dairy and coffee,
so milk fifteen point one percent, cheese twenty four fortunately,
but is still a bargain having only gone up sixty
three percent. Chris Quinn's Food Starts New Zealand Managing director
and as well as Chris.

Speaker 2 (00:20):
Very good morning to you, Good morning Mike.

Speaker 1 (00:22):
I mean the way you can explain that is and
I'm sure people don't like it, but we are paying
the price for our dairy success. I mean that's part
of the story, isn't it.

Speaker 2 (00:30):
That is and it's a fantastic part of the story
for New Zealand. So a dairy and red meat in
particular being very very strong. The impact on consumers is clear,
and you set out some of the numbers that we're
starting to see. We're pleased this month we've had our
lowest retail price increases for the year so far, so
food stuff stores only two point four But this pressure

(00:51):
is very clear on those products that we're reading. Great
export revenues from what.

Speaker 1 (00:56):
See I can't I mean short of it being data.
And it's interesting to chat about if you know that
we do well out of cheese and dairy, and you
knew that coffee was coming because climatically it's a problem,
and therefore chocolate is in the same category. And you've
also got fruit and vegetables, which I note have gone up,
but that's the climate and we can do nothing about that.
What's the point of all of this because it is

(01:16):
what it is.

Speaker 2 (01:18):
And I think people do understand that way better now.
I suspect because we just did a survey in April,
just as we do every month, talking to our customers
about what's on their minds, and over half of New
Zealanders said, Look, we understand that suppliers product costs are
going up. We understand international imports, we understand shipping and freight,
and we understand that the cost of operating businesses is higher.

(01:39):
So there is some understanding up there, but none of
that makes it easier on our household in terms of
meeting budget. So that's why we're working really hard to
try and keep our retail increases off the back of
all of that lower than all of those cost increases.

Speaker 1 (01:51):
Right, So can you look through once we've taken out
that stuff that we can explain, can you look through
these numbers and see that there's no gouging going on
the supply side of It's not an issue that transfer.
All the other stuff that is inflationary, that's still under control.

Speaker 2 (02:07):
Look, I think we know our profits because they've been
examined multiple times, so you know, we've been very clear
and very public when we retain about three point six
cents profit after tax of every retail dollar, and that's
what funds and pays for everything we do. We don't
know enough about the rest of the supply chain, but
we do know that these pressures are pretty consistent. We
see the global demand, so I think consumers in New

(02:32):
Zealanders should be able to rely somewhat on the fact
that we're very focused on price. We just publish something
where we compared twenty of our biggest selling products to
Aldie and Australia out of pack and safe, and that
basket of products was eight percent cheaper in New Zealand.
After you those GST Well, that's interesting, yeah, it is.
It's you know, I think facts do matter a little bit.
I know they sort of can appear pretty pretty complicated,

(02:55):
but keeping it simple like that matters.

Speaker 1 (02:57):
Okay, nice to talk to you, You have a good weekend.
Chris Quid Food Stuff.

Speaker 2 (03:01):
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