Foodstuffs New Zealand is working with suppliers to manage rising costs, as pressure builds across the grocery supply chain due to the conflict in the Middle East.
The retailer said measures include faster payments for small and medium-sized suppliers and quicker processing of price change requests linked to fuel costs.
At the same time, requests tied directly to fuel costs will be prioritised, with review times reduced.
Foodstuffs MD Chris Quin said current food price data – including Stats NZ’s reported 3.4 per cent inflation and the co-operative’s 3.7 per cent year-on-year increase – does not reflect the full extent of cost headwinds.
“We’re seeing the early impacts of higher fuel costs, but some of that pressure will take time to show up on shelves because we’re at the end of global and domestic supply chains,” he explained.
While there are no product shortages yet, Quin said that higher fuel prices are affecting the entire system, from production and packaging to transport and distribution.
“We aim to strike a balance between backing suppliers so they can manage the extra costs, while working to deliver value for customers,” he concluded.
- Further reading: Foodstuffs is on the hunt for the ‘next best’ local grocery products.
