Winter of discontent hits vege prices hard

Last updated 22:59 24/08/2008
CRAIG SIMCOX/The Dominion Post
WATERLOGGED: Levin vegetable grower John Clarke surveys a crop of soggy cabbages after the wet weather.

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Skyrocketing vegetable prices are about to climb even higher thanks to months of rain, hailstorms and frosts that have wreaked havoc on crops.

Shoppers are turning to frozen vegetables as one of the worst winters in two decades pushes prices up -and quality down -around the country.

And with more rain expected this week, industry experts are predicting a rise of 15 to 25 per cent, record prices in October and shortages till Christmas.

Alastair Turner, a senior trader at Fresh Direct -which supplies New Zealand supermarkets, retailers and wholesalers -said it had been one of the worst winters in his 20 years.

Crops, especially green leafy plants, had been hammered and vegetable growth in hot houses stunted by lack of sunlight, he said.

"There will be massive problems of supply through to Christmas as a result.

"There will always be something in the country but supply will be so short it's not enough to share around.

"People are paying the highest possible prices in retail stores but the quality probably is the worst."

Grower John Clarke, who owns 161 hectares at Levin's Woodhaven Gardens, said his 17 crop varieties had been destroyed. Lettuce and spinach were hit worst.

"Every bit of rain continues to make it worse at the moment. Last weekend Horowhenua looked like Queenstown - it was white everywhere, there was two inches of hail," he said. Hail on crops was "like hitting them with a shotgun".

"Big gaps" in the market place were likely for six to eight weeks as rain stopped planting.

Fruit and vegetable prices rose 8.7 per cent in the year to June, with lettuce, potatoes and broccoli the biggest drivers.

Statistics New Zealand food index prices figures will be out today.

Foodstuffs South Island chief executive Steve Anderson said supply was a lot tighter. "It's basic supply and demand. When supply gets tight the prices go up."

Consumers turned to canned and frozen vegetables in the past when prices of fresh produce increased, and they were now selling well.

MetService predicts showers with some general heavy rain across the North Island till Friday. Heavy rain warnings are out for Kaikoura, North Canterbury and Bay of Plenty.

 

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