Tough tactics in produce wars

At least one supermarket in Hawke's Bay has bullied fruit and vegetable growers and similar industry tactics could be revealed if a watchdog is formed to overview produce retailing, says the proprietor of two roadside stalls in Napier and Hastings.
John Wilson, co-owner of The Vege Shed, which has shops in Guppy Rd, Taradale, and Havelock Rd, between Hastings and Havelock North, said he was aware of one act of bullying in which a grower had been warned by a supermarket against supplying a rival.
 It was several years ago, and the grower is no longer in business, he said, but added: "I'm not suggesting they were put out of business by the supermarket. And I'm not criticising supermarkets in general, but some of them did want it all.
"Most growers are smaller businesses and are scared to say anything," he said.
"But it doesn't worry us. We don't supply them."
Mr Wilson does, however, doubt whether any supermarkets are raising shelf prices to as much as 500 per cent of the growers' cost, as claimed in a report on a Green Party survey.
But it was no secret fruit and vegetables provided the greatest margins for supermarkets, followed closely by meat.
"That's why when you go into the supermarket the fruit and vegetables are just inside the door, and the meat department is next," he said.
Publicity surrounding this week's report has opened a door for Mr Wilson, who has grasped the opportunity to capitalise.
By early yesterday, the landmark "LOOK" sign outside the Havelock Rd shop was carrying the message: "No inflated margins here."
The focus is on fresh vegetables direct from the garden with no need for great margins.
 Mr Wilson leaves the shot-firing largely to the politicians, conceding the supermarkets have products which may at times make minimal profits, including some vegetables imported in winter.
"I'm trying to be fair to both sides," he said.
Meanwhile, Hawke's Bay industry leader and Horticulture New Zealand director Ru Collin is looking for "transparency", saying the issues had been around for years before the Green Party report.