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Speaker 1: We will nothing like the price of mints. To take your

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Speaker 1: attention off the war. Food price inflation four point five

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Speaker 1: percent of the twelve months to February. If you actually

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Speaker 1: read the numbers, which most of the media never do,

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Speaker 1: of course, prices actually fell in the last month. Meat

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Speaker 1: poulsberry fish annually seven point five down on a monthly basis.

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Speaker 1: Fruit and veggie's up nine point four annually, but on

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Speaker 1: a month down. Chris Quinn is the CEO of Foodstuff's

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Speaker 1: North Ireland and is back with us.

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Speaker 2: Morning, Good morning, Mike.

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Speaker 1: Now are we over selling this on a monthly basis?

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Speaker 1: The thing that's got all the headlines, i e. The

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Speaker 1: mints is actually down month on months, and if it

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Speaker 1: keeps going down month on month, eventually the annual figure

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Speaker 1: will dissipate somewhat. Or am I trying to find too

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Speaker 1: much good news that isn't really there?

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Speaker 2: Mike? I think we'll live in a pretty unpredictable time. So,

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Speaker 2: and what this is showing us as New Zealings, We're

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Speaker 2: involved in everything in the world. So the red meat

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Speaker 2: shortages around the world are showing up in great export

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Speaker 2: prices for our farmers and for that industry. But it's

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Speaker 2: also showing up in price for News Islanders at the

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Speaker 2: same time as where we're trying to anticipate what this

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Speaker 2: global conflict will be for food prices in New Zealand

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Speaker 2: as well.

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Speaker 1: Okay, fruit and vegetable, so they're not international prices. Is

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Speaker 1: that See? Can you bury yourself in data and come

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Speaker 1: up with a narrative that it's the end of the

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Speaker 1: world or it's actually not that bad if you wanted to.

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Speaker 2: What we're seeing in terms of food price movement and

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Speaker 2: for February, yes, we saw a four point five percent

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Speaker 2: total market movement, but our stores managed to keep the

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Speaker 2: retail price increase to only three point seven So every

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Speaker 2: step in the chain can work on the efficiency and

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Speaker 2: the cost it takes to get food to market, and

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Speaker 2: we're trying to do that through everyone of our individually

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Speaker 2: owned stores. But what we are seeing is seasons, we're

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Speaker 2: seeing global prices, we're seeing energy costs. All of these

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Speaker 2: things play a role and what it costs to produce

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Speaker 2: food and put it on shelter to supermarket.

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Speaker 1: Has the war, as in the Epic Fury War, added

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Speaker 1: to the cost in the two and a bit weeks

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Speaker 1: it's been going yet.

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Speaker 2: Yeah, it's not showing up in the February numbers. That

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Speaker 2: would be two soon for it to show up. We

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Speaker 2: are definitely seeing dramatic increases in the cost of diesel,

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Speaker 2: which is all about our supply chain fleets, and we're

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Speaker 2: seeing our supplies start to tell us that they really

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Speaker 2: are seeing component costs like plastics start to increase pretty

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Speaker 2: rapidly in terms of prices they need to pay, so

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Speaker 2: we anticipate there is going to be some impact. The

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Speaker 2: good news is supply is not a risk, so our

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Speaker 2: supply comes down through around the bottom of South Africa

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Speaker 2: rather than coming through the straits of Holms, so we

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Speaker 2: are not concerned about having products on shelf. What we

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Speaker 2: are keeping a very kef line is what has happened

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Speaker 2: to costs.

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Speaker 1: If I walked into a supermarket today, has the diesel

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Speaker 1: price that we've seen in the two weeks hit the

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Speaker 1: price yet or is there stuff coming out of warehouse

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Speaker 1: is still from the old day so to speak.

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Speaker 2: That's basically right, like it has not hit shelves yet.

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Speaker 2: We are seeing just for our own truck fleet, the

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Speaker 2: distributes from our warehouses to our stores, we're seeing a

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Speaker 2: multimillion dollar impact and diesel price for the next few months.

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Speaker 2: We're absorbing that at this point to try and do

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Speaker 2: everything we can to have it minimize the impact on

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Speaker 2: New Zealanders on shelf. But there is this continues, it

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Speaker 2: is going to be very difficult to suppress.

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Speaker 1: Is it directly linked? If the war is one month,

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Speaker 1: the price increases a one month, therefore what's on the

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Speaker 1: shelf will be up for one month.

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Speaker 2: I don't think it's as simple as that, and that

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Speaker 2: would need a good understanding and knowledge of the global

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Speaker 2: oil market, which is not our direct expertise. But I

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Speaker 2: suspect the effects will be a little longer lasting than

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Speaker 2: the war itself.

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Speaker 1: I read an interesting piece Selly Copeland i Acehume. You

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Speaker 1: know she works at Wolworth. She's now leaving the company.

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Speaker 1: Apparently she says they keep two point three cents for

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Speaker 1: every dollar in stores. Do you do roughly the same?

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Speaker 1: And in saying that, does anybody believe you?

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Speaker 2: We are three point six and we've been talking about

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Speaker 2: that number for quite a long time as our net

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Speaker 2: profit us to tax number for our family owned stores.

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Speaker 2: And I'm not sure if people believe this or not,

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Speaker 2: but it has had more auditing than almost any industry.

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Speaker 2: So it's a fact that important part of people thinking

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Speaker 2: about the industry appreciated.

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Speaker 1: At Chris Chris Quinn, who is the boss of food

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Speaker 1: stuf Stathland, they've been the middle of a court case

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Speaker 1: at the moment that I didn't have time to ask

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Speaker 1: them about the sellly Copeland reference. By the way, in Woolworths,

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Speaker 1: you'll find that in the Herald on Saturday. It's an

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Speaker 1: interesting insight. She's new, they're the opposing company, of course,

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Speaker 1: and she gives an interesting insight into supermarkets. And just

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Speaker 1: my reference to food going down, four of the six

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Speaker 1: subcategories reported price declines month on month, and so you've

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Speaker 1: got to be careful between annual and monthly because of

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Speaker 1: the monthly declines build up, the annual numbers start to drop,

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Speaker 1: and therefore you also get the subcategories involved in the

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Speaker 1: outliers like your chocolate, your coffee, and a few of

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Speaker 1: those go through the roof. They offset the falls that

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Speaker 1: you might not see. So it's worth actually looking at

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Speaker 1: the whole picture and not just part of it.

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Speaker 2: For more from the Mike Asking Breakfast, listen live to

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Speaker 2: news talks. It'd be from six am weekdays, or follow

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Speaker 2: the podcast on iHeartRadio,