gave Rising cost of food has been within the headlines for the past decade. But prices are usually not rising consistently across all food groups – and this has big health implications for New Zealanders.
Last week Statistics NZ was released. Food price data Showing the most important drop in prices in six years. Second quarter Consumer Price IndexDue today, New Zealanders will likely be given a broad overview of inflationary pressures, including the associated fee of food.
Despite the recent drop in prices, concerns are over Food security, food affordability And the dietary quality of local food is maintained.
Although food price increases have been significant over the long run, changes in relative prices—the worth of 1 food category relative to a different—often go unnoticed. Anyway, this Relative price changes are significant Because they influence consumer decisions, often unconsciously.
our New research Between 2014 and 2023 – 560 stores – from supermarkets, greengrocers, fish shops, butchers, convenience stores, restaurants, and outlets selling breakfast, lunch, and takeaway foods – in 12 urban areas Examines NZ data from 85 food price statistics collected. .
Between July 2014 and March 2023, the costs of some sugary, processed foods and beverages similar to boxed chocolate, ice cream, soft drinks and sports energy drinks have increased by about 14 percent. Along with this, the costs of some vegetables and fruit have increased by around 45%.
While sugary processed foods are cheaper than vegetables and fruit, People tend to buy more of the former. This can result in poor dietary habits, increasing the prevalence of obesity and health problems.
Aldar Abulkhanov/Getty Images
Unique aspects cause prices to drop.
While food prices have risen globally since 2020, mainly as a result of the COVID-19 pandemic and geopolitical tensions, many countries have seen the fallout. Reduction in food inflation. As recent figures from Statistics NZ show, that is beginning to occur in New Zealand too.
However, New Zealand's inflation rate was much higher and more persistent than in lots of other developed countries, suggesting Unique factors may be at play.
The structure of the retail food sector, dominated by Foodstuffs and Woolworths, has change into more concentrated as food prices rise. Competition is lacking. Lead to high prices.
However, considering how long the duopoly has dominated the supermarket sector, this doesn’t necessarily explain the changes in absolute and relative prices shown in our research.
Due to increased regional specialization, New Zealand's supply chain for fresh fruit and vegetables is especially vulnerable to disruptions brought on by extreme weather events.
Although specialization improves production efficiency, it increases the danger of localized shocks, similar to Cyclone Gabriel. This is exacerbated by a sparse transport network.
International trade also affects the relative prices of several types of food. New Zealand has a combination of production and exports. significantly different from its imports..
New Zealand, for instance, doesn’t produce sugar beets or sugar cane, making it entirely depending on sugar imports. In contrast, a lot of the fresh fruit and vegetables consumed in New Zealand are grown locally.
These aspects can affect the production and value of various foods, causing prices to differ. Access to different sources of imported foodstuffs can reduce price volatility, while regionally concentrated domestic supply can result in large fluctuations in food prices.
Food prices are a health issue.
The widening affordability gap between processed foods and healthy produce isn't just an issue of access. It has a major impact on health.
In New Zealand it was one in three adults. Obesity in 2020-2021, childhood obesity can also be on the rise. The incidence of diabetes increased from 35.7 per 1,000 people in 2012 to 41.5 per 1,000 people in 2021.
What's more, the variety of diabetic patients is expected to increase. by 70%–90% over the subsequent 20 years, and the annual cost of diabetes could increase from NZ$2.1 billion to $3.5 billion over the identical period.
More worryingly, these burdens don’t fall evenly across the New Zealand population.
Malnutrition disproportionately affects indigenous people and lower economic classes. Pacific peoples and Maori have it. Low average income And High obesity rates Compared to New Zealanders of European descent.
Low-income families have long found this. A challenge to endure And follow a healthier weight-reduction plan due to the rising relative prices of vegetables and fruit.
A multi-pronged strategy is required.
The increasing relative affordability of sugary foods is a major threat to the health of New Zealanders. Without intervention, the country could face rising rates of chronic food-related diseases, further burdening an already overburdened health care system.
A comprehensive approach involving economic, educational and regulatory measures is vital to reverse these trends and promote higher nutrition and health for all New Zealanders.
A will need to have. A multi-pronged strategy To address the complex challenges facing our food system. It needs to incorporate taxes on sugary foods in addition to subsidies on fresh produce, bans on junk food marketing aimed toward children, tackling food insecurity and investing in free school lunches.