Foodstuffs North Island is implementing measures to support its suppliers in New Zealand amid rising cost pressures.

The company will shorten payment terms for smaller suppliers, moving payments to the 20th of each month, 10 days earlier than before. The change allows suppliers to pay their partners sooner and helps ease cash flow pressure.

Foodstuffs CEO Chris Quin said the priority is to help suppliers maintain operations while managing impacts on customers. “Our suppliers are a critical part of keeping food on shelves across New Zealand,” he said.

“For smaller suppliers, cash flow is critical. Paying them sooner gives them more room to operate and invest in their business.”

Foodstuffs is also reducing the time taken to assess fuel-related cost adjustment requests to four to six weeks, from up to 12 weeks. Approved adjustments will be temporary to avoid locking in inflation when input costs ease.

Fuel costs are affecting the supply chain, from production to transport and retail. Foodstuffs said it is working with suppliers to balance pricing with supplier operations. Quin said the company is facing similar pressures, with diesel costs adding up.

“Our job is to balance keeping prices as low as possible for customers while supporting suppliers so they can keep producing,” he said.

The company is expanding programs including New World Emerge and supplier workshops covering pricing, promotions and operations. The initiatives aim to help SMEs build long-term partnerships with the co-operative and expand distribution.

Quin said supporting local suppliers, which represent the largest group by number, will benefit the company, locally owned stores and consumers. He added that these suppliers help keep shelves stocked with innovative products.