It is not surprising to any Kiwi when you mention the high costs of living in New Zealand, with the price of groceries contributing heavily. 

The duopoly of Foodstuffs and Woolworths NZ (Countdown) rake in over $22 billion in profits each year. 

Combined with the fact New Zealand produces enough food for approximately 40 million people, and 95% of dairy products are exported, the situation is a strange one. 

It is testament to the fact big business is favoured at the cost of the average citizen. 

China is the biggest consumer of New Zealand produce. Imagine, more Chinese people are eating Kiwi-grown food than actual New Zealanders eat.

And yet still, some of our own people go hungry or suffer from diet-related illnesses.

Economically, the cash selling to overseas buyers is more attractive and lucrative than selling to Kiwis.

A draft report released by the Commerce Commission says New Zealand’s supermarket sector is a ‘duopoly’, with other grocery stores largely unable to compete on price.

The report, which was commissioned by the Government last year, recommends increasing competition with major grocery chains and helping consumers make more informed purchasing decisions, among other measures. Submissions on the report are being accepted until 26 August.

Dr. Sommer Kapitan, Senior Lecturer of Marketing, Auckland University of Technology, comments:

“The Commerce Commission found in eight months what any consumer could have articulated freely: grocery prices are too high. 

“They are too high a percentage of most New Zealanders’ weekly budgets, among the highest in the OECD. 

“Price and economic considerations are quite simply the main driver of any consumer behaviour, and that’s the biggest worry for consumer psychologists. 

“That means Kiwis are having to make choices about food product type like healthier food based on price versus preference. 

“Price is the first nudge towards better, healthier eating, and with obesity and diet-related disease a key concern in New Zealand, high prices are a barrier to better health for most Kiwis. 

“The government must act now to correct this imbalance and make good quality, healthy unprocessed wholefoods a more affordable price for all New Zealanders.

“Another key issue for our two main supermarket chains is brand image. 

“These supermarkets are now known widely as being expensive and charging high prices; the reputation for being too pricey is set, as 90% of consumers buy from these two main players.”

The likes of the German-owned discount grocery store giant Aldi has stated in the past it has no plans on coming to New Zealand, despite performing well against the same duopoly in Australia. 

Rather hilariously, the National Party tried to turn the government’s supermarket enquiry around and blame the government itself for the high prices. 

They spouted the same, tired, “taxes and regulations” they have been spruiking across the nation. 

That’s like blaming the Police for creating the criminals who robbed the jewelry store. 

Central Otago is blessed with an abundance of locally grown produce, which is able to be purchased directly from a number of local stalls and markets.

Funnily enough, some of the National Party’s past policies have greatly contributed to the duopoly we currently have. 

National’s Commerce and Consumer Affairs spokesperson Todd McClay says “the interim report on supermarket pricing will likely confirm what a lot of New Zealanders are experiencing when they head to the shops”. 

“The Government must take responsibility for its role in increasing the cost of living, including the price of food, and its impact on New Zealanders’ pay packets. 

“Through its term the Government has continued to add costs on businesses and Kiwi families, and it’s inevitably resulted in higher prices for consumers.

“Rather than wait for the final report, the Government has the opportunity now to make changes that will have a positive impact on struggling households. 

“Government taxes and regulations are driving up costs across the board, including petrol and rent, and it’s making it harder for working Kiwi mums and dads who are trying to make ends meet,” Todd McClay says.

I have to disagree. If taxes and regulations contributed to higher prices, why do the supermarkets continue to record eye-watering record profits? 

The problem is competition, they know they can raise the prices without risk of consumers going elsewhere, instead of keeping the prices the same and realising lower profits. 

What do National propose? They have offered nothing except to ridicule their opponents. Do they, by condemning taxes, prefer not to tax the extremely wealthy duopoly? Not to regulate big businesses renowned tax-dodging or questionable employee policies? 

Crucially, those who suffer most in all of this are low-socio-economic families, who pay more for healthy food. 

When the cost of healthy food is combined with a lack of knowledge of preparing healthy food, many low-income families fall into the trap of buying junk food, which is often cheaper and more convenient. 

Why buy greens, veggies, fruit, etc when you can buy an immediate meal for a family for $20 at a fast-food restaurant? 

This perpetuates the unhealthy cycle, contributing to poor health outcomes such as obesity and diet-related illnesses. 

Think for a second, this same group of people are more likely to be working minimum wage jobs, such as those offered working on the floor in supermarkets. 

The system is broken. If you dare speak about fixing it with taxes or regulations, and putting decent food into Kiwis mouths you are at risk of being labelled an evil “socialist” or “communist” (despite those not being the same thing). 

Yet if you skew the system to benefit big business you are called a good “capitalist” and perhaps a “defender of democracy”, and apparently not a contributor to the real problem in modern democracies - corporate socialism. 

I swear you will hear more about this as we see more and more billionaires blasting into space for fun while the common person fights for toilet breaks at work. 

I personally believe quality food is a basic human right and the utmost should be done to make it affordable and accessible for all, so too the knowledge on how to grow it, prepare it, distribute it. 

At current rates in the modern world, for which this problem is almost universal, there will be a class divide forming between producers of food and the consumers. 

We are already seeing it in the so-called “urban and rural divide”. 

It needs to be bridged and respect needs to go both ways. All minds need to come to the table and propose ideas. 

I’ll be purchasing more directly from farmers and growers from now on, and cutting out the middleman.

Perhaps it is time for local co-op supermarkets to be formed.