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Home / New Zealand

Food prices: Budget-friendly mince now too expensive for some

NZ Herald
4 Feb, 2022 05:00 PM4 mins to read

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The price of premium mince reached $23.99/kg this week. Photo / Babiche Martens

The price of premium mince reached $23.99/kg this week. Photo / Babiche Martens

The humble spag-bol has become a little more boujee than budget in the past year, as mince is no longer the cheapest option in the meat aisle.

Mince was the go-to for families on a budget, but the price tag of up to $24/kg of the lower-fat choice means even free-range chicken is often the cheaper protein.

In January 2007, 1kg of beef mince would have cost $9. A quick scan online shows this week at New World premium beef mince will set you back $23.99/kg.

In comparison a whole 1.5kg free-range chicken was $15.

Pak'nSave mince ranged from $11.99/kg for lower-grade beef mince to $18 for the healthier premium mince.

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At the same store on the same day, boneless chicken breasts were $11.99/kg - the same price as the fattier mince.

Rump steak was $20.99/kg, beef sausages were on special at $8.49 for six, and plant-based mince was about $7.99 for 300g.

In the UK supermarket chain, Tesco sells premium beef for £7.16/kg - the equivalent of $14.65.

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The chart below shows the actual price rise of mince compared to inflation. The price in 2022 is even higher.

Kit Arkwright, from NZ Beef and Lamb, said ultimately the retailer set the price but international supply and demand influenced it.

"As an exporting nation, the price of beef and lamb in New Zealand is ultimately reflected by what our global markets are prepared to pay," he said.

"There is clearly strong demand for our grass-fed red meat across the globe and last year alone our red meat sector generated $9.2 billion in export revenue and thousands of jobs and income for New Zealanders."

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Bovine spongiform encephalopathy (BSE), or mad cow disease, meant Brazil's export market was recovering and Argentina had limited exports.

Australia was re-building its beef herd, so there was extra demand for New Zealand beef, Arkwright said.

In short, countries around the world want a cut of New Zealand beef.

"Although global beef supply is constrained, there is still strong global demand for beef and the value of New Zealand's beef exports to all our major markets has increased in recent months."

The price of mince might not be good on the wallet, but it could be better for the health, according to the Heart Foundation.

Last year the foundation suggested people should consume less than 350g of unprocessed red meat a week to reduce the risk of heart attack and stroke.

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Choosing better-quality cuts of meat and eating smaller portions was one option - as was adding more vegetables to the mix.

Arkwright said the beauty of mince was that adding vegetables to it meant more iron from the meat was able to be absorbed by the body - and it went further.

The mince price rise comes as the annual price of groceries rose 4.5 per cent in 2021 and the price of milk, butter, and cheese are all creeping up as global dairy prices hit a seven-year high.

Fonterra Brands signalled wholesale prices for milk, cream, butter, cheese and spreads are increasing because of bumper world dairy prices.

Average increases are 10c for a 2-litre bottle of milk, 67c for 500g of butter and $1.17 for 1kg of cheese.

New Zealand exports 95 per cent of its dairy product, and Fonterra Brands, the New Zealand division of the country's biggest export business, pays its parent company the same price for the product as it fetches offshore.

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Making the most of mince:
• Add breadcrumbs or cracker crumb to meatballs or patties.
• Cooked rice can add volume and soak up flavours.
• Grated or chopped carrots, turnips or celery add nutrition and bulk.
• Lentils, beans and chickpeas can bulk out dishes like nachos or lasagne.

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