Latest / Early Edition with Ryan Bridge / John Murphy: Vegetables NZ chair says supplier cost increases to supermarkets still rising, but trend is below overall inflation

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John Murphy: Vegetables NZ chair says supplier cost increases to supermarkets still rising, but trend is below overall inflation · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: The latest Infometrics food Stuff's Grocery supply indexes out. In
• 0:05
  Speaker 1: the year to November, supplier costs rose two point one percent.
• 0:09
  Speaker 1: Now that's slightly up from October, which saw an increase
• 0:12
  Speaker 1: of two percent. Remember it's still more expensive. It's two
• 0:15
  Speaker 1: percent more expensive. In November, almost three and a half
• 0:18
  Speaker 1: thousand items increased in cost compared to October, and that's
• 0:22
  Speaker 1: the largest single month increase since July. John Murphy is
• 0:25
  Speaker 1: the chair of Vegetables New Zealand and joins me. Now,
• 0:27
  Speaker 1: good morning to you, John.
• 0:28
  Speaker 2: Merry Christmas, Mate, Merry Christmas to you too, Andrew.
• 0:31
  Speaker 1: So what does this mean for Christmas dinner?
• 0:35
  Speaker 2: It means there's plenty of good produce available and so
• 0:39
  Speaker 2: we've seen really good supply of fresh vegetables really for
• 0:43
  Speaker 2: the last few months. To be honest and fantastic, boy
• 0:47
  Speaker 2: of the consumers look a little bit tough on some suppliers,
• 0:51
  Speaker 2: but we're delighted and be able to get sweet corn
• 0:54
  Speaker 2: and all kinds of salads. And before they even start
• 0:57
  Speaker 2: looking at the berries and everything like that that are available,
• 0:59
  Speaker 2: it looks really good.
• 1:00
  Speaker 1: So talk to me about the supplyer cost as well.
• 1:02
  Speaker 1: Supply cost is two thirds of the price increases. The
• 1:05
  Speaker 1: prices have gone up two point one percent, where are
• 1:07
  Speaker 1: they getting squeezed in their costs?
• 1:13
  Speaker 2: Look, I think that there is still some general inflationary
• 1:17
  Speaker 2: pressure that you see, and so you see that lots
• 1:19
  Speaker 2: of diesel and things like that's starting to creep in,
• 1:21
  Speaker 2: which affects those freight costs that you've been talking about
• 1:24
  Speaker 2: this morning with theories and everything as well. So there
• 1:27
  Speaker 2: are still general costs, but the general trend is below
• 1:30
  Speaker 2: general inflation, i'd say as well. So yeah, I think
• 1:34
  Speaker 2: the key thing here is that there's still very good
• 1:37
  Speaker 2: buying available, and particularly in the produce area, which I
• 1:41
  Speaker 2: sees around one point five percent for the year. That's
• 1:44
  Speaker 2: got to be seen as a successful consumers.
• 1:46
  Speaker 1: I think that's the second time you've said that, so
• 1:48
  Speaker 1: I know what you're saying. You're saying by local, aren't
• 1:51
  Speaker 1: you really? Because global production is still low, so there's
• 1:53
  Speaker 1: loads of inflation there. So you know, don't buy yourself
• 1:56
  Speaker 1: a French mushroom, buy yourself a New Zealand one.
• 2:00
  Speaker 2: Absolutely absolutely. Look, I think that the general rule is
• 2:03
  Speaker 2: if you buy what's abundant, what's available, then you'll do well.
• 2:07
  Speaker 2: And that's buying the big ticket items at the front
• 2:11
  Speaker 2: of the supermarket really, and that's also good for consumers
• 2:14
  Speaker 2: because it reflects what's abundant and available and that's what
• 2:18
  Speaker 2: we've got.
• 2:19
  Speaker 1: To sell absolutely, John, Look, Merry Christmas and what are
• 2:23
  Speaker 1: you going to have for Christmas dinner?
• 2:27
  Speaker 2: Look, we'll be getting into all kinds of salads alongside
• 2:31
  Speaker 2: the traditional ham as well. And then back Meanderson Buriers.
• 2:35
  Speaker 1: Of course you had I forgot your vegetable New Zealand chair.
• 2:37
  Speaker 1: You're going to have an awful lot of salads. I
• 2:39
  Speaker 1: wouldn't be surprised if you weren't a vegetarian. John, I
• 2:42
  Speaker 1: thank you so much for your time today.
• 2:44
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• 2:47
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• 2:50
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