Second consecutive food price fall shows the market works

Friday 14 October 2011, 8:48AM
By Federated Farmers of New Zealand


The second consecutive fall in the Food Price Index, this time by one percent, shows that the market is working to deliver fair pricing.

“It would be nice to see those who jumped on the food price bandwagon, say some positive things about the market,” says Bruce Wills, Federated Farmers President and the Federation’s economics and commerce spokesperson.

“If you look at the food staples, like vegetables, bread and some meat, there’s actually been a fall and that needs to be acknowledged.

“While vegetables usually fall at this time of the year, I need to point out some big falls in beef and lamb because they’ve been subject to some comment.

“Milk of course remains steady due to Fonterra’s retail freeze. Despite this, one of our Wellington staff said his local dairy, the Standen Foodmarket in Karori, is selling four litres for $6.90; $1.73 a litre.

“All of these things have helped contribute to a one percent fall for September. This latest fall follows on from a 1.3 percent fall in August.

“Looking at the year to September, food prices are up 4.7 percent and are pretty much inline with inflation. We mustn’t forget that half of the increase is due to last October’s GST increase.

“As food prices are one of these flash point areas, it would be nice to think this second consecutive fall in the Food Prices Index may get some positive comment,” Mr Wills concluded