The margins of supermarkets cause outrage

The margins at supermarkets for fruit and vegetables have caused outrage in New Zealand. An investigation by the Green Party revealed that supermarket margins were on average 100 to 300% for fruit, and that 78% of producers were forced to sell below cost price.

According to the Green Party, the majority of supermarkets practice a margin of 100 to 200% for fruits and vegetables. The reports shows that a producer was paid NZ $ 2 for a tray of 20 avocados (production cost $8 NZ) that was sold by the supermarket for $19.80, representing a margin of 880%.

The survey points out that these practices has led to struggling producers and slow consumption because of high prices. The supermarket chains say that the figures provided by the survey were "grossly inaccurate". The Green Party calls for the pricing practices of supermarkets to be monitored and calls for the establishment of a voluntary code of conduct.

source : stuff co, nz herald