Coalition partner, political party New Zealand First has announced a policy to “end the supermarket duopoly” in the country.

The so-called duopoly – which the Commerce Commission said late last year accounted for around 82 per cent of market share – consists of both Woolworths and Foodstuffs, which operates the brands Pak’n’Save and New World.

NZ First claims this is causing a detrimental effect to the country’s supply chain and consumers. “The current system sees job losses and uncertainty hit food producers,” it said.

In its proposals, the party wants to introduce legislation to split Foodstuffs into two separate corporations – one for each brand.

“Real competition means real pressure to lower prices, improve value, and treat suppliers fairly,” the announcement added.

The plans also included emboldening the Commerce Commission to create tougher penalties against major supermarkets, while adding a new framework on how pricing decisions are made.

These proposals were welcomed by the Grocery Action Group, but a supposed lack of detail was criticised.

“New Zealanders deserve to know how these changes will affect both supermarket giants and what concrete measures would be taken in the wholesale supply to foster true competition and fairer prices,” the group’s chair Sue Chetwin said.