1 00:00:00,120 --> 00:00:02,320 Speaker 1: Right, the headline number is a problem, but can it 2 00:00:02,360 --> 00:00:04,720 Speaker 1: be explained away to a degree? Food prices have spiked 3 00:00:04,720 --> 00:00:07,160 Speaker 1: three point seven percent for the year, well above inflation, 4 00:00:07,280 --> 00:00:10,960 Speaker 1: so warp warp problem, devil in the detail. Dairy and coffee, 5 00:00:11,000 --> 00:00:14,520 Speaker 1: so milk fifteen point one percent, cheese twenty four fortunately, 6 00:00:14,560 --> 00:00:16,600 Speaker 1: but is still a bargain having only gone up sixty 7 00:00:16,640 --> 00:00:19,440 Speaker 1: three percent. Chris Quinn's Food Starts New Zealand Managing director 8 00:00:19,480 --> 00:00:20,360 Speaker 1: and as well as Chris. 9 00:00:20,320 --> 00:00:22,400 Speaker 2: Very good morning to you, Good morning Mike. 10 00:00:22,520 --> 00:00:24,200 Speaker 1: I mean the way you can explain that is and 11 00:00:24,239 --> 00:00:26,240 Speaker 1: I'm sure people don't like it, but we are paying 12 00:00:26,239 --> 00:00:28,080 Speaker 1: the price for our dairy success. I mean that's part 13 00:00:28,080 --> 00:00:28,840 Speaker 1: of the story, isn't it. 14 00:00:30,000 --> 00:00:33,040 Speaker 2: That is and it's a fantastic part of the story 15 00:00:33,080 --> 00:00:35,159 Speaker 2: for New Zealand. So a dairy and red meat in 16 00:00:35,200 --> 00:00:40,360 Speaker 2: particular being very very strong. The impact on consumers is clear, 17 00:00:40,479 --> 00:00:42,239 Speaker 2: and you set out some of the numbers that we're 18 00:00:42,240 --> 00:00:45,559 Speaker 2: starting to see. We're pleased this month we've had our 19 00:00:45,560 --> 00:00:48,400 Speaker 2: lowest retail price increases for the year so far, so 20 00:00:48,479 --> 00:00:51,720 Speaker 2: food stuff stores only two point four But this pressure 21 00:00:51,760 --> 00:00:54,120 Speaker 2: is very clear on those products that we're reading. Great 22 00:00:54,200 --> 00:00:55,840 Speaker 2: export revenues from what. 23 00:00:56,280 --> 00:00:58,760 Speaker 1: See I can't I mean short of it being data. 24 00:00:58,760 --> 00:01:01,320 Speaker 1: And it's interesting to chat about if you know that 25 00:01:01,360 --> 00:01:03,480 Speaker 1: we do well out of cheese and dairy, and you 26 00:01:03,560 --> 00:01:06,440 Speaker 1: knew that coffee was coming because climatically it's a problem, 27 00:01:06,480 --> 00:01:09,119 Speaker 1: and therefore chocolate is in the same category. And you've 28 00:01:09,160 --> 00:01:11,520 Speaker 1: also got fruit and vegetables, which I note have gone up, 29 00:01:11,560 --> 00:01:13,880 Speaker 1: but that's the climate and we can do nothing about that. 30 00:01:14,760 --> 00:01:16,840 Speaker 1: What's the point of all of this because it is 31 00:01:16,880 --> 00:01:17,479 Speaker 1: what it is. 32 00:01:18,840 --> 00:01:21,679 Speaker 2: And I think people do understand that way better now. 33 00:01:21,680 --> 00:01:23,959 Speaker 2: I suspect because we just did a survey in April, 34 00:01:24,040 --> 00:01:25,960 Speaker 2: just as we do every month, talking to our customers 35 00:01:25,959 --> 00:01:29,000 Speaker 2: about what's on their minds, and over half of New 36 00:01:29,080 --> 00:01:32,120 Speaker 2: Zealanders said, Look, we understand that suppliers product costs are 37 00:01:32,160 --> 00:01:35,640 Speaker 2: going up. We understand international imports, we understand shipping and freight, 38 00:01:36,280 --> 00:01:39,280 Speaker 2: and we understand that the cost of operating businesses is higher. 39 00:01:39,360 --> 00:01:41,840 Speaker 2: So there is some understanding up there, but none of 40 00:01:41,880 --> 00:01:44,120 Speaker 2: that makes it easier on our household in terms of 41 00:01:44,280 --> 00:01:47,039 Speaker 2: meeting budget. So that's why we're working really hard to 42 00:01:47,080 --> 00:01:49,080 Speaker 2: try and keep our retail increases off the back of 43 00:01:49,120 --> 00:01:52,200 Speaker 2: all of that lower than all of those cost increases. 44 00:01:51,800 --> 00:01:54,200 Speaker 1: Right, So can you look through once we've taken out 45 00:01:54,240 --> 00:01:56,760 Speaker 1: that stuff that we can explain, can you look through 46 00:01:56,800 --> 00:01:59,320 Speaker 1: these numbers and see that there's no gouging going on 47 00:01:59,440 --> 00:02:02,000 Speaker 1: the supply side of It's not an issue that transfer. 48 00:02:02,040 --> 00:02:06,280 Speaker 1: All the other stuff that is inflationary, that's still under control. 49 00:02:07,400 --> 00:02:09,760 Speaker 2: Look, I think we know our profits because they've been 50 00:02:09,800 --> 00:02:13,119 Speaker 2: examined multiple times, so you know, we've been very clear 51 00:02:13,120 --> 00:02:15,639 Speaker 2: and very public when we retain about three point six 52 00:02:15,720 --> 00:02:19,240 Speaker 2: cents profit after tax of every retail dollar, and that's 53 00:02:19,280 --> 00:02:22,320 Speaker 2: what funds and pays for everything we do. We don't 54 00:02:22,360 --> 00:02:24,880 Speaker 2: know enough about the rest of the supply chain, but 55 00:02:24,919 --> 00:02:27,320 Speaker 2: we do know that these pressures are pretty consistent. We 56 00:02:27,360 --> 00:02:31,960 Speaker 2: see the global demand, so I think consumers in New 57 00:02:32,040 --> 00:02:34,839 Speaker 2: Zealanders should be able to rely somewhat on the fact 58 00:02:34,840 --> 00:02:38,079 Speaker 2: that we're very focused on price. We just publish something 59 00:02:38,120 --> 00:02:40,200 Speaker 2: where we compared twenty of our biggest selling products to 60 00:02:40,280 --> 00:02:43,080 Speaker 2: Aldie and Australia out of pack and safe, and that 61 00:02:43,160 --> 00:02:45,520 Speaker 2: basket of products was eight percent cheaper in New Zealand. 62 00:02:45,600 --> 00:02:49,360 Speaker 2: After you those GST Well, that's interesting, yeah, it is. 63 00:02:49,520 --> 00:02:52,000 Speaker 2: It's you know, I think facts do matter a little bit. 64 00:02:52,040 --> 00:02:55,440 Speaker 2: I know they sort of can appear pretty pretty complicated, 65 00:02:55,480 --> 00:02:57,440 Speaker 2: but keeping it simple like that matters. 66 00:02:57,880 --> 00:02:59,560 Speaker 1: Okay, nice to talk to you, You have a good weekend. 67 00:02:59,639 --> 00:03:00,639 Speaker 1: Chris Quid Food Stuff. 68 00:03:01,040 --> 00:03:03,920 Speaker 2: For more from the Mic Asking Breakfast listen live to 69 00:03:04,040 --> 00:03:07,120 Speaker 2: News Talks at B from six am weekdays, or follow 70 00:03:07,160 --> 00:03:08,720 Speaker 2: the podcast on iHeartRadio.