Jo Raphael: Grocery industry needs a fair shake of the sauce bottle

A fair compromise needs to be reached without hitting consumers in the pocket, writes Jo Raphael. Photo / NZME

OPINION:

There are, I believe, two types of supermarket shoppers.

There are those who like to shop around, write lists, take their time and compare prices.

These are shoppers who tend to prepare their week's menus in advance and have a budget and stick to it. They have their reusable bags ready to pack.

Then there are those who are brand-loyal regardless of that week's price, they are not prepared, their incomplete and hastily-written lists are on the backs of used envelopes and they usually spend more money after having gone up and down the aisles figuring out from memory what they need.

There are no reusable bags in their car, having forgotten to put them back in the boot after the last shop.

I would say I'm a mixture of about 10 per cent the former and 90 per cent the latter.

But I think good for those who are prepared and can get the most out of their regular trip to the supermarket.

But are we getting a fair shake of the sauce bottle from our supermarkets?

The Commerce Commission released its draft report into our country's supermarket ''duopoly'' this week, warning that supermarkets could be forced to sell their wholesale businesses, or some sites, to boost competition.

The two major players – Woolworths (Countdown) and Foodstuffs (New World and Pak'nSave) – usually only consider what each other is doing when considering prices, the Commission found.

The report also found "many suppliers have few alternatives but to supply the major retailers". This allowed the supermarkets "to exercise their buyer power to push excess risks, costs and uncertainty on to suppliers", the Commission said.

Tauranga Chamber of Commerce boss Matt Cowley has called the report a "warning shot" for supermarkets to find ways to review their supplier agreements and customer pricing strategies.

Supermarkets have to ensure there was fair value shared along their supply chain to support smaller businesses.

"The farmers ... the transporters and the supermarkets need to earn their fair share."

He's right, of course.

I believe the industry needs to have a fairer model, producers need to be fairly recompensed for their products and in a way that's not put back on to consumers.

It's a fine balance to try and navigate. The margins need more balance in favour of growers and there needs to be more competition.

I hope the commission's warnings lead to change. I love a good bargain - but not at the cost of a farmer's livelihood.