Finally there is some mainstream acknowledgement of the way fresh fruit and vegetables are priced by the supermarket duopoly – high, and more interestingly, far higher than processed food. Sue Kedgley’s survey only consisted of 75 farmers and the actual markups are hard to extract from the supermarkets (they deem it “commercially sensitive” information), however this only makes the need for an independent investigation more urgent. What’s even more worrying is that a majority of those surveyed are actually selling below the cost of production. The supermarkets have defended themselves by claiming that price differences between their produce and other produce (sold at other greengrocers) is a quality issue, which just goes to show how stupid they think the average person is. While many supermarkets do get higher grades than some greengrocers, the fact that they leave them on the shelf so long, and the fact that it’s so easy for the average person to notice, means that the “quality” you paid for was lost ages ago. However, this is not a call to throw away even more fruit and vegetables that are no longer very fresh. The problem comes down to buying too much at one time.
My partner and I stopped buying fruit and vegetables at the supermarket quite a while ago due to the clear price difference, and started shopping at the greengrocers only 2 minutes walk away. I’ve not only noticed a price difference, but a freshness difference as well. On the rare occasion that I get up in time for the farmer’s market, the freshness and range is astounding, and the fact that there is no middleman between the growers and sellers gives me the warm fuzzies. Prices are similar, but you’re paying for actual quality and contributing to someone else’s livelihood, rather than paying to be screwed over and screwing over a farmer who is stuck between a rock and a hard place.
Best solution though? Start planting your own produce! Sure, we’re in winter, but there are plenty of green leafy things that still grow (and I live in Christchurch, so don’t use the Southern excuse). Or if you’re impatient, start planning and ordering seeds so that you’re ready when spring rolls around.
Also, I have an idea (which you’re welcome to rip to shreds, as long as you reason it out). What if, instead of removing GST on all fresh fruit and vegetables, we removed GST from all fresh (ie. unprocessed) NZ grown organic fruit and vegetables (someone should probably fill me in a little more about the complications of the certification schemes right about…now)? It is pretty well established that much of (although admittedly not all) organic farming is better for the soil, waterways, workers, consumers (as we pay less tax to clean up after the problems that conventional agriculture involve), and farmer incomes. For example, a study conducted in Canterbury, NZ found that economically, ecosystem services in organic agriculture are worth more than they are in conventional fields. To quote the study (ES=”ecosystem services”):
If half the arable area under conventional farming shifted to organic practices, the total economic value of ES would be US $192 million and US $166 million annually for organic and conventional arable area, respectively…conventional New Zealand arable farming practices can severely reduce the financial contribution of some of these services in agriculture whereas organic agricultural practices enhance their economic value (in abstract)
If you’re interested in reading the study but you’re not enrolled at a University, email me. If you are enrolled, check out the study (the whole journal issue is really interesting actually):
Harpinder, S. S., Wratten, S. D., Cullen, R. & Case, B. (2008) The future of farming: The value of ecosystem services in conventional and organic arable land. An experimental approach. Ecological Economics, 64(4): 835-848.
The respective profiles of each of the authors:
National Centre for Advanced Bio-Protection Technologies, PO Box 84, Lincoln University, Canterbury, New Zealand (first two authors)
Commerce Division, PO Box 84, Lincoln University, Canterbury, New Zealand
Environment, Society and Design Division, PO Box 84, Lincoln University, Canterbury, New Zealand
PS. I forgot to mention the proposed Supermarket Code of Conduct which is being proposed in response to the exorbitant pricing. Personally, I don’t think letting supermarkets self regulate is actually benefiting us – it didn’t benefit Britain, for example. Setting more stringent limits on the market you’re allowed to dominate would be a start.