1
00:00:00,280 --> 00:00:00,960
Speaker 1: Yeah, you got that.

2
00:00:01,080 --> 00:00:02,600
Speaker 2: You wouldn't have said that a couple of months ago,

3
00:00:02,640 --> 00:00:05,360
Speaker 2: would you now back home? Speaking of things to sell

4
00:00:05,400 --> 00:00:08,080
Speaker 2: to people? What about the supermarket and the prices and

5
00:00:08,119 --> 00:00:11,760
Speaker 2: the food price inflation annually three point five Does this

6
00:00:11,840 --> 00:00:13,800
Speaker 2: add to the general sense that a bit of pressure

7
00:00:13,880 --> 00:00:16,720
Speaker 2: might be going back on overall inflation picture. That official

8
00:00:16,800 --> 00:00:19,560
Speaker 2: number comes out tomorrow, of course. Foodstuffs New Zealand managing

9
00:00:19,560 --> 00:00:22,440
Speaker 2: director Chris Quinn back with us, very good morning, Good morning, Mike.

10
00:00:22,520 --> 00:00:24,799
Speaker 2: As regards price increases three and a half percent. Have

11
00:00:24,800 --> 00:00:27,440
Speaker 2: we got a brewing issue here? Is inflation back or not?

12
00:00:28,960 --> 00:00:31,200
Speaker 1: Look, it is definitely an up tour on what we've

13
00:00:31,200 --> 00:00:33,320
Speaker 1: seen so far this year. But there are a couple

14
00:00:33,320 --> 00:00:36,600
Speaker 1: of key causes in this one. So the food price

15
00:00:36,600 --> 00:00:41,040
Speaker 1: inflation number was three point five percent, our retail increases

16
00:00:41,320 --> 00:00:43,599
Speaker 1: only two point eight, so we're doing something to manage that.

17
00:00:43,680 --> 00:00:46,920
Speaker 1: But the big drivers right now were butter prices in

18
00:00:47,040 --> 00:00:50,600
Speaker 1: land legs in but are obviously what's going on with

19
00:00:50,680 --> 00:00:53,520
Speaker 1: dairy and the global dairy trade. Pricing, which is fantastic

20
00:00:53,560 --> 00:00:56,560
Speaker 1: for our economy, obviously does still flow through to local

21
00:00:56,600 --> 00:01:00,280
Speaker 1: prices of products made from dairy And the other thing

22
00:01:00,360 --> 00:01:02,840
Speaker 1: for the month of March is that lem leads because

23
00:01:02,840 --> 00:01:05,440
Speaker 1: of the shift of Easter, so the production and promotions

24
00:01:05,440 --> 00:01:08,640
Speaker 1: on those shifted from March to April. So that's a

25
00:01:08,640 --> 00:01:10,640
Speaker 1: couple of the key causes in behind this. There's a

26
00:01:10,640 --> 00:01:12,800
Speaker 1: lot of other products that have continued a nice flat,

27
00:01:12,920 --> 00:01:15,200
Speaker 1: you know, one to three percent sort of.

28
00:01:15,160 --> 00:01:17,760
Speaker 2: Increase if you wanted to be healthy. And this is

29
00:01:17,840 --> 00:01:20,640
Speaker 2: sort of off topic, but nevertheless, what I'm looking at

30
00:01:20,680 --> 00:01:23,400
Speaker 2: is fruit and veggies are down. Tomatoes and cabbage are

31
00:01:23,400 --> 00:01:26,399
Speaker 2: particularly down. Meat, poultry and fishes flat. So if you

32
00:01:26,440 --> 00:01:30,080
Speaker 2: want to eat well and avoid chocolate and all of that,

33
00:01:30,120 --> 00:01:32,240
Speaker 2: you can do so, and the price isn't going through

34
00:01:32,280 --> 00:01:32,640
Speaker 2: the roof.

35
00:01:33,800 --> 00:01:35,720
Speaker 1: That's right, And that's probably the best news about the

36
00:01:35,760 --> 00:01:39,000
Speaker 1: last twelve months is that the fresh products that you know,

37
00:01:39,080 --> 00:01:41,160
Speaker 1: people would like to be adding more of than have

38
00:01:41,280 --> 00:01:43,440
Speaker 1: had a reasonably hard time with some of the weather

39
00:01:43,480 --> 00:01:46,840
Speaker 1: events in the last two years. They have really stabilized

40
00:01:47,000 --> 00:01:48,800
Speaker 1: and New Zealand growers are doing a great job of

41
00:01:48,800 --> 00:01:50,320
Speaker 1: getting that value to our customers.

42
00:01:50,600 --> 00:01:52,920
Speaker 2: And that explanation you give on Dearie are there's still

43
00:01:53,000 --> 00:01:55,600
Speaker 2: people around who don't understand the equation. They may not

44
00:01:55,800 --> 00:01:58,640
Speaker 2: like it, but do they not understand it that we

45
00:01:58,760 --> 00:02:00,960
Speaker 2: sell stuff to the world. The world is willing to

46
00:02:00,960 --> 00:02:02,520
Speaker 2: pay us a lot of money, which is good for

47
00:02:02,560 --> 00:02:05,440
Speaker 2: the country. Therefore we end up paying that domestically.

48
00:02:06,760 --> 00:02:09,280
Speaker 1: Yeah, I think in a world of very disturbed global

49
00:02:09,320 --> 00:02:12,200
Speaker 1: trade and settings right now, it is fantastic that we

50
00:02:12,240 --> 00:02:15,079
Speaker 1: have an economy that does that still. But as you can,

51
00:02:15,200 --> 00:02:17,360
Speaker 1: you know, as the product is sold across the world,

52
00:02:17,560 --> 00:02:21,880
Speaker 1: then obviously the components that go into milk, butter, cheese,

53
00:02:22,120 --> 00:02:24,320
Speaker 1: products like that, you're going to see the impact of

54
00:02:24,960 --> 00:02:27,840
Speaker 1: the core components increasing in value. You're going to see

55
00:02:27,840 --> 00:02:30,519
Speaker 1: it in our local products. We try to talk about

56
00:02:30,560 --> 00:02:33,080
Speaker 1: it like this so that people do understand that's what's happening.

57
00:02:33,639 --> 00:02:36,920
Speaker 2: PlayStation five, which has got nothing to do with supermarkets

58
00:02:36,960 --> 00:02:39,040
Speaker 2: yesterday said they are going to put the price up

59
00:02:39,040 --> 00:02:40,840
Speaker 2: because life is difficult, and so we're just going to

60
00:02:40,840 --> 00:02:43,079
Speaker 2: pass that cost on. How much of that are we

61
00:02:43,160 --> 00:02:44,040
Speaker 2: still seeing in food?

62
00:02:45,800 --> 00:02:48,239
Speaker 1: Look, I think food's pretty transparent. It's had a lot

63
00:02:48,240 --> 00:02:50,880
Speaker 1: of focus and there's been a lot of measurements and

64
00:02:50,320 --> 00:02:53,600
Speaker 1: a lot of tracking of food. So I think it

65
00:02:53,600 --> 00:02:57,040
Speaker 1: has a lot of scrutiny. Two thirds of what makes

66
00:02:57,120 --> 00:02:58,639
Speaker 1: up the price of what goes on on shelf and

67
00:02:58,639 --> 00:03:01,040
Speaker 1: a super market on average the cost of goods from

68
00:03:01,040 --> 00:03:05,239
Speaker 1: supplies that's had less scrutiny and less focus than supermarkets.

69
00:03:05,960 --> 00:03:09,040
Speaker 2: You got any read on tariffs, any idea of any

70
00:03:09,080 --> 00:03:11,240
Speaker 2: of this floats down to a supermarket shelf, and if

71
00:03:11,240 --> 00:03:12,440
Speaker 2: it does win and buy how much?

72
00:03:13,800 --> 00:03:15,760
Speaker 1: I guess The key thing is everyone will know about

73
00:03:15,760 --> 00:03:18,840
Speaker 1: tariffs is that it's on products going into countries like

74
00:03:18,840 --> 00:03:22,160
Speaker 1: the United States, so at face value, it shouldn't affect

75
00:03:22,160 --> 00:03:24,960
Speaker 1: the price of goods that we buy. The real questions

76
00:03:25,000 --> 00:03:27,440
Speaker 1: will be two things. One is what happens to availability

77
00:03:27,440 --> 00:03:29,920
Speaker 1: around the world. Do we get much higher availability of

78
00:03:29,919 --> 00:03:32,720
Speaker 1: products because they're no longer being bought as much in

79
00:03:32,760 --> 00:03:35,080
Speaker 1: those countries? And the other one is what happens to

80
00:03:35,080 --> 00:03:38,200
Speaker 1: global shipping, So as those patterns change and settle, will

81
00:03:38,240 --> 00:03:40,600
Speaker 1: that add cost to New Zealand, will we still get

82
00:03:40,600 --> 00:03:43,600
Speaker 1: the same volume of shipping available or will it improve things?

83
00:03:43,640 --> 00:03:46,600
Speaker 1: And that's a really guessing game right now that our

84
00:03:46,640 --> 00:03:48,480
Speaker 1: team are looking at pretty closely every day.

85
00:03:48,680 --> 00:03:51,640
Speaker 2: Not surprised, Chris appreciate it. Chris Quinn, who's with food stuffs,

86
00:03:51,640 --> 00:03:53,600
Speaker 2: of course, eighteen minutes away from eight.

87
00:03:53,680 --> 00:03:57,600
Speaker 1: Tasking for more from the Mic Asking Breakfast. Listen live

88
00:03:57,720 --> 00:04:00,640
Speaker 1: to news talks that'd be from six am WE or

89
00:04:00,680 --> 00:04:02,600
Speaker 1: follow the podcast on iHeartRadio