New Zealand’s first grocery commissioner has been appointed by the government to try to improve competition in the supermarket sector and rein in excess profits. 

Since a March 2022 Commerce Commission study found supermarkets were earning up to $1M a day in excess profits, the government has made a number of changes to boost competition - including unit pricing, a grocery supply code, and requiring major retailers to offer wholesale offerings - but grocery prices are still rapidly rising.

Statistics NZ data released for June 2023 showed food prices in New Zealand were 12.5 per cent higher than in June 2022. Significant increases were in fruit and vegetables (22 per cent), and meat, poultry and fish (11 per cent).

"Increasing prices for fresh eggs, six-pack yoghurt, and cheddar cheese were the largest drivers within grocery food,” Stats NZ consumer prices manager James Mitchell said.

The second largest contributor to the annual movement was fruit and vegetables. The increase in this group was driven by tomatoes, kūmara, and potatoes.

An Alexandra resident said he is now menu planning to feed his family and reducing the amount of meat meals.

“This month I’ve signed up for Dry July, and I thought we would see a drop in the grocery bill… but it hasn’t seemed to make any difference. Things are skyrocketing.”

Read more:  Supermarket chain defends prices.

Food poverty in Central is growing, with community pantries being well utilised, and an increase in the number of people looking for food parcels according to Cromwell Community House manager Karen Palmer. 

Read more: Community Food Network proposed for Cromwell and Street pantries help ease food poverty

The appointment of Pierre van Heerden as New Zealand’s grocery industry regulator will benefit Kiwi consumers, Commerce and Consumer Affairs minister Dr Duncan Webb said.

“As the global cost of living crisis continues to put pressure on families, his appointment is a significant one to hold the sector to account,” Duncan said. 

“An important focus of the grocery commissioner will be in levelling the playing field and ensuring increased competition in the grocery industry, and for the benefit of Kiwi consumers.”

Pierre’s appointment has been celebrated by groups such as Consumer NZ. 

“This is an important step in the lengthy process required to introduce fairness, improved transparency and, ultimately, improved competition into our grocery sector,” Consumer NZ CEO Jon Duffy said. 

“Over the past year and a half we've watched sentiment towards the cost of groceries significantly change, rocketing up the list of household financial concerns. It's imperative we have a grocery sector that is fair and transparent.”

In other grocery news, after less than one year of operating as Alexandra’s Countdown, the store will become Woolworths in a $400M rebrand announced by the supermarket on July 18.