Bumper Crop Brings Good News for Christmas: Summer Favourites See Price Drops

As Christmas approaches, New Zealand’s food prices are looking brighter than expected, with significant year-on-year price reductions across many popular summer foods. According to the latest food price inflation (FPI) data from Foodstuffs supermarkets, shoppers can expect to find better deals on fresh produce just in time for the holiday season.

Food Price Inflation Levels Fall in November

November 2024 has brought welcome news for New Zealanders as food price inflation (FPI) remains relatively low. Both Foodstuffs and Stats NZ reported an increase of just 1.3% in their baskets of food products year on year, marking the ninth consecutive month that inflation has remained under 1.5%. This follows a period of much higher inflation in previous years, with Stats NZ's national average sitting at 6% last year and almost 11% two years ago.

Chris Quin, Managing Director of Foodstuffs NZ, expressed his satisfaction with these results, noting that 2024 is the year food price inflation has been brought back to a more acceptable level. Quin also mentioned the positive signs of returning consumer confidence, with many people feeling optimistic about their finances in the year ahead.

Price Drops Just in Time for Christmas

A range of summer food staples have seen notable price reductions, providing much-needed relief to families preparing for festive feasts. Key price drops include:

• Orange kūmara: Down 58% compared to last November.
• Precooked sausages: 10% cheaper.
• Pork loin chops: 8% cheaper.
• Brown onions: 50% cheaper.
• Carrots: 23% cheaper, ideal for fresh coleslaw.
• Cabbage: 11% cheaper.
• Mandarins: 16% cheaper.
• Strawberries: 7% cheaper.

Thanks to excellent spring growing conditions, there will be an abundance of fresh summer fruits and vegetables in stores, ensuring that your Christmas pavlova or fruit salad will be well-stocked with delicious berries and fruits. Apricots, cherries, blueberries, and sweetcorn will be in great supply for Christmas week, making it an ideal season for fresh produce lovers.

Chocolate Prices Remain High

However, not all holiday staples are seeing price reductions. Christmas chocolates, a perennial favourite, are still being affected by global supply chain issues. Cocoa prices have nearly doubled compared to last November and tripled from two years ago. The rising costs are attributed to adverse global conditions, including shipping challenges in key regions like the Red Sea and congestion at major ports.

Despite these challenges, Foodstuffs has been able to avoid some of these rising costs, thanks to strong volumes and secure import rates, ensuring that stores are well-stocked for the summer season.

Overall Food Price Trends and Supplier Costs

While food prices have remained manageable for the most part, supplier costs in the Foodstuffs FPI basket have risen by 3.4% year on year—marking the highest increase since May. These supplier costs account for around two-thirds of the retail price, so while the inflation is still relatively low, it does indicate that the pressure on producers is still being felt.

Chris Quin noted that, despite inflationary pressures in Europe and the US, New Zealand’s food price inflation remains relatively stable and much lower than in many other countries. This is largely thanks to the collective effort of Foodstuffs’ members to manage costs efficiently, ensuring that food prices are kept in check despite ongoing global challenges.

Looking Ahead to 2025

As we head into 2025, New Zealand is in a relatively good position compared to other countries, with food price inflation under control. Looking ahead, Quin hopes the country can focus on other areas of the economy to boost prosperity.

For now, Kiwis can look forward to a holiday season with more affordable prices on many of their favourite foods, from barbecue essentials to fresh fruit for festive desserts.

Fast Facts

• Food Price Inflation: 1.3% year on year for November 2024 (both Stats NZ and Foodstuffs).
• Key Price Drops: Summer favourites such as kūmara, sausages, pork chops, strawberries, and more.
• Rising Costs: Chocolate prices continue to increase due to global cocoa supply issues.

As we prepare for the festive season, it's reassuring to see food price inflation under control, especially with a bumper crop of summer produce and more affordable barbecue items. Whether you’re stocking up for Christmas dinner or just enjoying a festive treat, this year’s price drops will make celebrating a little easier on the wallet.