Food costs twice as much in UK

By BRONWYN SELL

Staple foods in Britain are almost twice as expensive as in New Zealand, even after the exchange rate is taken into account, says a British survey.

The survey, released by the British Consumers Association, compared prices of 15 basic foods in London, Manchester, Auckland and Wellington.

Each item has been converted from British pounds to NZ dollars.

The total price for the 15 items, which included meat, oil, rice, butter, milk, sugar and cheese, was $285.30 in Britain and the equivalent of $133 in New Zealand.

The biggest differences were in the prices of eye fillet beef and rice. One kilogram of beef sold for an average $24.76 in New Zealand and $67.38 in England.

A kilo of rice was $1.79 in New Zealand and $6.64 in England, said the survey, done by the Economist Intelligence Unit.

The Consumers Association blamed the European Common Agricultural Policy (Cap) for inflated British prices.

The association, which is campaigning for cheaper food, especially for poorer people, said the New Zealand results set an example for Europe, and showed how successful the liberalisation of agriculture could be for consumers.

But the chief executive of the British National Beef Association, Robert Forster, told the Herald that any fall in prices would jeopardise the quality of agricultural products.

British farming costs were high and they had risen as awareness grew of animal welfare and environmental effects, he said. The "mad cow" disease scare showed it was not wise to cut corners.

"It's impossible to produce food any cheaper," said Mr Forster.

It could even be argued that prices did not cover the full production costs, he said.

New Zealand's Trade Commissioner in Britain, John Waugh, said the figures were not surprising. New Zealand had battled the Cap for many years over subsidies and quotas, he said. Beef exports in particular were heavily restricted.

British Environment Secretary Margaret Beckett has warned farmers that they will need to justify the £3 billion ($10 billion) a year spent on them by taxpayers.

David Russell, chief executive of the New Zealand Consumers Institute, said many factors needed to be considered, including differences in income between the two countries.

"They get paid a whole lot more money in terms of salaries but you've got to weigh that up against purchasing power," he said.

Just because food cost more in Britain did not mean New Zealanders were doing well.

"In fact, we're behind the start-mark because of the high prices the primary producers have been receiving in New Zealand.

"The New Zealand price is set by what the primary producers gain overseas and we have suffered proportionately over the past 12 months as consumers."