123RF
Think butter is expensive here? Spare a thought for Britons, who can’t buy a block for less than $6.70.
Kiwi expats love to grumble about how much cheaper it is to fill a trolley in the UK.
While once their grizzling was firmly rooted in truth, lately the price differences have become much less stark and, in the case of some favourite foods, New Zealand now offers a better deal.
Until recently, the UK had relatively low food prices, thanks to fierce competition in the grocery sector, easy access to European produce, and government subsidies paid to farmers.
But inflation has skyrocketed post-Brexit, -pandemic and -Putin’s invasion of Ukraine. Food prices rose almost 10% in the 12 months to June and experts have warned the UK’s “golden era” of cheap food is over.
READ MORE:
* Why the $1 loaf of bread is a thing of the past
* If Kiwis pay too much at the supermarket, what’s the price of cheese overseas?
* Cheesed off – the price of a 1kg block of tasty cheese is now out of reach for some
According to retail research firm Assosia, a basket of staples including instant coffee, pasta, baked beans and eggs now costs 13% more than a year ago.
Chris McKeen/Stuff
A school breakfast club is seeing more and more children turn up for a feed as the cost of living surges. (First published May 17, 2022)
Butter, the subject of much complaining by Kiwi shoppers in recent months, has led the upwards charge in the UK and is now cheaper in New Zealand.
Analysis of prices on Trolley.co.uk shows the cheapest 500g block of butter available to UK shoppers on Wednesday was £3.50 (NZ$6.76), while the most expensive was £4.75 ($9.17).
Local grocery price comparison site Grocer.nz shows Tararua butter from The Warehouse (New Zealand’s cheapest block at $4.90, or $4 for Market Club members) was a steal in comparison.
Bizarrely, the Tararua product was also the most expensive butter in the country, at $8.30 from Countdown.
Staying in the dairy aisle, the price of milk in the UK rose 22% over the last year but is still significantly lower than in New Zealand.
A two-litre bottle of blue top cost £1.28 ($2.47) at Aldi, while Countdown’s own brand standard milk was New Zealand’s cheapest at $3.84 a bottle.
UK cheese prices also increased – by a whopping 59% – over the same period but, like milk, remains much cheaper for Britons, largely due to farm subsidies.
Dropped in New Zealand in the 1980s, subsidies protect farmer incomes and make retail prices seem lower, but consumers pay higher taxes to support them.
A 900g block of mature cheddar was just £3.99 ($8.33 per kilo) from Sainsbury’s, while the cheapest kilo of tasty cheese in New Zealand, made by Meadow Fresh, was almost twice that price at $15.99 from Pak ‘n Save.
Unsplash
Kiwi shoppers are getting a better deal on lamb roasts and rump steak this week, but mince is cheaper in the UK.
Although shoppers here were paying more for milk and cheese, local prices for some red meat were much lower.
The cheapest British beef rump steak was £17.30 (NZ$33.38) per kilo from Asda, compared to $14.49 at Pak ‘n Save.
Stickman also had a much better deal on lamb, with leg roasts costing $16.99 per kilo, versus £10.99 ($21.20) in the UK.
Lean beef mince (5% fat), however, was just £5.78 ($11.75) a kilo from UK chain Aldi, compared to $16.99 per kilo for Super Value’s premium mince.
Justin King, former head of UK supermarket chain Sainsbury’s, told The Guardian the “golden era” of low food prices was over for Britons and shoppers now faced hard choices over how to spend their money.
“I suspect what we will see is a higher proportion, across the piece, spent on food for the longer term.”
The head of the British Retail Consortium (BRC), which represents the major supermarkets, agreed consumers were in for a difficult time.
Chief executive Helen Dickinson said fierce competition among supermarkets had so far limited price rises on essential products, but pressures in the food industry “do not look to be easing anytime soon”.
*Prices correct as of Wednesday, July 27, 2022.
Discussion about this post