Wattie's in Hawke's Bay has made a series of cuts to local fruit and vegetable production over the past few months. Photo / Monique Steele, RNZ
By Monique Steele of RNZ
The hunt for the cheapest fruit and vegetables by both supermarkets and shoppers is putting pressure on locally produced crops in New Zealand.
Over the past few months, well-known brand Wattie’s New Zealand of Hawke’s Bay made a series of cuts to local production, first of canned peaches, then tomatoes, beetroot and corn.
A spokesman for the brand, owned by American food giant Kraft Heinz, said it annually reviewed its crop intake to respond to market demand, increased competition from imported goods and rising input costs.
David Hadfield, chairman of grower group Process Vegetables (representing processors McCains, Wattie’s and Talley’s), said food quality and safety regulations on New Zealand farms were generally higher than in other countries.
But he said shoppers, supermarket buyers and others such as rest-home meal providers were instead buying based on price.
“I think the downswing at the moment is just a blip, really.”
He said when demand increased, which he was hopeful it would, so too would the area of crops grown locally.
“But as far as local fresh vegetables go, it seems to be a changing trend that there’s less and less going into shopping carts. That is a worrying trend.”
Hadfield said imported produce may be cheaper, but local growers needed to be viable to keep growing and support food security, in the face of high input and labour costs.
“I suspect it’s quite a lot cheaper than New Zealand-grown,” he said.
“In supermarkets, they’re looking to make money, so if they can buy something cheaper somewhere else, they will.
“Not to say that it’s as good as what they can buy locally, but the consumer doesn’t know that, so they push it through their home brands.”
Supermarkets Foodstuffs and Woolworths imported fruit and vegetables for some of their canned home brands, including Pams and Woolworths essentials.
Generally, they imported peaches from South Africa or China, beetroot from China, corn from Thailand and tomatoes from Italy.
Hadfield said production standards varied country by country, as did the use of labour in harvest times and safety measures on farms.
“You can understand why they do it, but quality-wise, the New Zealand produce is probably better.”
A spokesperson for Foodstuffs said it sourced locally “wherever possible”, but international supplies helped keep prices affordable and supplies consistently available for shoppers.
“Wherever possible, we source from New Zealand producers, but in some categories, particularly canned fruit and vegetables, global sourcing allows us to maintain quality and price stability year-round,” the spokesperson said.
“When local supply can’t meet the volumes we need, or when sourcing internationally helps us keep prices affordable without compromising quality, we’ll explore overseas options.”
A Woolworths spokesperson said it sourced canned fruit and vegetables from both the Northern and Southern hemispheres, following the seasonal harvests to ensure a year-round supply.
“New Zealand has a limited number of manufacturers canning vegetable and fruit products, but we do stock branded options.”
Woolworths said its canned tomatoes were sourced from Italy for authenticity.
“We only source products that meet our quality and responsible sourcing requirements, and we have established, long-standing and trusted relationships with our current global suppliers.”
Both supermarkets held their own responsible sourcing policies and rules for suppliers, who must also comply with rules and regulations from their own country.
Foodstuffs prohibited child labour, forced labour or modern slavery from suppliers, and also audited them by the external firm Sedex.
These included suppliers identified as international “high-risk” sites – of which 163 out of 165 had completed a recent “social audit”.
One of Woolworths New Zealand’s responsible sourcing rules was that suppliers must uphold worker rights.
“We take a risk-based approach to managing risk in our trade supply chain,” a spokesperson said.
“All trade suppliers, including those of vendor-branded goods, are expected to have established arrangements and processes consistent with our commitment to upholding human rights, outlined in the Responsible Sourcing Policy.
“Sites in scope of our Responsible Sourcing Standards are subject to risk assessment, and their risk profile drives their due diligence requirements. These requirements may include self-assessment questionnaires and third-party social compliance audits.”
Social development and Christian not-for-profit organisation Tearfund New Zealand warned that companies would not scrutinise their food import supply chains for modern slavery until it was made into law.
Head of advocacy Claire Gray said globally, horticultural products were considered “risky goods” largely because of labour concerns and the industry’s reliance on migrant workers, but New Zealand employment standards were higher than in other countries.
She said there were historical reports of forced labour linked to some food exports from China, and organised crime connected to tomatoes from Italy.
“A few red flags on that list, for sure,” she said.
“The level of risky goods being imported into New Zealand is exceptionally high, and it’s getting worse because ... other countries have this modern slavery reporting legislation.
“And so then a country like New Zealand runs the risk of becoming a dumping ground for all of those risky goods that can’t get into other markets where there are tighter regulations.”
Gray said other markets like Britain and the European Union had anti-slavery or forced labour legislation in force, while New Zealand did not.
There had been previous commitment to introducing modern slavery legislation, but she said it never got over the line, though she remained hopeful it would.
“I think New Zealanders are being put in a really difficult position because at the moment, the responsibility to make an ethical choice, if you will, is falling completely on the shoulders of consumers because we don’t have a law requiring businesses to take action in this space.”
Gray said polling research showed it was not price that was the biggest inhibitor for New Zealand shoppers buying more ethically, but a lack of available information on how to.
Shoppers of canned or frozen fruit and veges were encouraged to learn where the product came from.
Angela Clifford of not-for-profit organisation Eat New Zealand said the situation with Wattie’s pulling back local production was the result of a consolidated horticulture industry, driven by profit.
“[Kraft Heinz’] purpose is to maximise profits for their shareholders, their purpose is not to support New Zealand food growers or eaters,” she said.
“So I think it’s an indictment on where our food system is up to.
“Our choices are being really significantly limited more and more now.”
Clifford said a short, local food supply chain would better support local farmers and empower “eaters”.
“There are a whole lot of other reasons that you might choose local food, like the food is being produced in a way that the workers who are producing the food are being looked after, better environmental credentials,” she said.
“Even if you’re after the best value, then I’d really encourage people to understand about how much their local food costs.”
She said people should do their homework when shopping around.
“And don’t believe the hype that food in supermarkets from elsewhere is necessarily the cheapest food.”
– RNZ