John Murphy: Vegetables NZ Chair says fresh produce prices could well begin to rise

Prepare for more price rises. 

Data due out tomorrow is expected to show the inflation rate has risen again, from 2.2% to about 2.4%. 

One contributing factor is food price inflation, which is now back up at 3.5%. 

Vegetables New Zealand Chair John Murphy told Ryan Bridge that while fresh produce prices have fallen in the past 12 months, that trend isn't likely to continue. 

He doesn't see them coming down any further, and they could well go up. 

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Episode Transcript

Speaker 1 (00:00):
Food prices have gone up three and a half percent
in the last year. This is the year to March.
We had the stats and z numbers out yesterday. Inflation
on non alcoholic beverages and grocery items are the key drivers,
butter and as we've just seen, and chocolate being the
worst offenders. Chair of Vegetables in z John Murphy with
me this morning. John, Good morning, Ran. Good to have

(00:21):
you on the show. So interestingly, veggies actually were among
the group coming down.

Speaker 2 (00:27):
Yeah, I think we've certainly done our part and keeping
that inflation low, which is good for consumers. And yeah,
I would say that it actually shows that it's a
pretty tough time out there for vegetable growers at the moment,
so we do have to keep an eye on that
for sure.

Speaker 1 (00:43):
What's tough at the moment.

Speaker 2 (00:46):
Look, I think the key thing there is consenting, a
lack of consistent consenting around various regions in New Zealand,
and that's really the thing that could have an effect.
The other way in these figures is to the future.
So we're working pretty hard to make sure that fresh,
healthy food is prioritized in the RIMA reforms that are

(01:09):
going on at the moment. We think that's really essential
so that we don't see a spike the other way
in the future.

Speaker 1 (01:16):
Okay, let's put that to a side for one second.
But well, do you think we'll see these numbers keep
falling or will they stabilize? Here?

Speaker 2 (01:23):
What happens for vegetables, they can't fall any further, To
be honest, I think we're at a point where we've
got really abundant supplies of fresh vegetables, and I would
say there's some really good buying it there at the moments.
Of course we're hoping people get out and for their trolleys,
But no, I don't see them coming down any further
for vegetables, that's for sure, and not going up. Look,

(01:46):
I think they could well go up, and particular, you
see the likes of a cyclone that's approaching that where
we see big spikes, and when we saw Gabrielle. It
seems like it's a distant past now, but we saw
fresh cut greens production go down by that fifteen percent

(02:08):
with that horrendous event. Now fifteen percent doesn't sound a lot,
but prices went up to three hundred percent because the
market tipped. So we don't want to see that in
the future.

Speaker 1 (02:16):
Certainly don't. Neither of us want to see that now.
The consenting issues the government made. If you've announced a
few changes to land use a couple of weeks back,
and that affects you know, it will affect your growers.
What do they think about them? Are they thinking they're
a good idea or are they thinking they're bad for business.

Speaker 2 (02:34):
Look, there's no doubt that there needs to be a reset.
So it's good that we're looking at it. But when
it comes to highly productive land, having good soils, great water,
great people, great, but we need consent to actually use
the land for what we're doing, and that part of
the equation hasn't been solved yet. So particularly in areas
like hot Offena and Pokakoe, those areas are in a

(02:56):
major threat if they disappear from the national food that
we've got, If we don't have that supply, then that
will affect the number of vegetable growers who are in business,
and that would not be good for these figures going forward.

Speaker 1 (03:10):
Good point, John, Thank you for that. John Murphy, share
of vegetables and Z with us this morning talking about
the price of wealth. What you put in your mouth

Speaker 2 (03:17):
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