Foodstuffs Keep Inflation Below Average As Meat And Dairy Increase; Tomatoes Rise On Import Ban
Stats NZ records 4.4% annual food price inflation (FPI) in May 2025
Foodstuffs see retail prices rise 3.2% YOY for their comparable FPI basket of products
Global prices continue to drive NZ price increases for butter, cheese, beef and lamb
Tomato prices up 30% YOY as ongoing ban on Australian imports impacts overall supply
The Foodstuffs grocery co-ops say global prices for dairy and meat are continuing to drive food price inflation in New Zealand while prices for another Kiwi favourite – tomatoes – are up now too due to the current ban on tomato imports from Australia.
Stats NZ has today reported a food price inflation (FPI) rate of 4.4% in May 2025, year on year, while the Foodstuff co-ops recorded an average 3.2% for their comparable FPI basket of products. The co-ops have been monitoring inflation at their stores since 2022, based on a basket of goods in the same categories Stats NZ monitors.
Key drivers of Foodstuffs' average 3.2% retail price increase in May were butter up 55%, cheese up 32%, beef steak up 25%, and lamb leg roasts up 23%.
Foodstuffs NZ Managing Director Chris Quin says butter prices have surged worldwide since late-2023 due to constrained supply and rising demand.
'Fortunately, Foodstuffs' scale means we can keep offering competitive prices throughout the country. Right now we're selling butter at a loss because we're committed to keeping essentials like butter as affordable and accessible as possible for customers.
'Meat is where inflation is being felt more keenly, given most of us eat more of it per day than butter. Beef commodity prices are still near record levels, with high demand for New Zealand exports just as we've seen a decline in the national herd. To bolster supply we're even bringing in a bit more Australian beef but only until local supplies improve in spring.'
Foodstuffs also saw a slight rise in the produce category, up 1.5% overall in May (YOY), influenced by increases of 30% for fresh tomatoes and 18% for both cucumbers and kiwifruit.
'Tomatoes are up due to seasonal supply and MPI's ban on Australian imports since brown rugose virus was detected there last year. That's to protect our domestic growers but it does mean supply will be lower until there's more sunlight and warmer temperatures here,' Quin says.
'So while Aussie tomatoes are off the shelves, a bit more Aussie beef is coming in – a reminder that New Zealand often relies on imports to supplement local supply and keep prices down or fill gaps entirely, and why it matters to have NZ-owned grocery retailers with the scale to compete for these products on global markets, if needed.
'That's how Foodstuffs have kept delivering value for customers for over a century, and why our scale will remain critical to keeping everyday items affordable.'
Foodstuffs' retail prices were again outpaced by supplier costs, up an average 4.8% for products in the co-ops' FPI basket, year on year. Earlier, Infometrics reported a 2.0% rate for the Grocery Supplier Cost Index, across 60,000 goods the co-ops stock including non-foods.
Stats NZ measures FPI by tracking the prices of individual items that make up a representative 'basket'. Foodstuffs NZ measures the prices of a basket of products in the same categories Stats monitors, applying the same weighting and methodology to calculate a year-on-year rate.
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