Days of cheap food are over

At a Tauranga breakfast, Minister of Agriculture, Forestry and Biosecurity David Carter has given an optimistic picture of New Zealand's future concerning his portfolios, but warns the price of food may cause some malcontent as the days of eating cheap are over.


Minister of Agriculture, Forestry and Biosecurity David Carter says the days of cheap food are over.

In 1969-70 the average cost of food was about 25 per cent of income. Last year it was six per cent.
'Round the rest of the world the cost of food has declined quite dramatically,” says David.
'I see that turning. The days of cheap, cheap food are gone, it is going to cost more – and that will be to New Zealand's advantage.”
The price increases are going to be driven by a predicted population increase of about 50 per cent over the next 50 years.
'Over the next 40 years the world will consume more food than has been consumed in history,' says David. 'And we are going to be a supplier for that food.”
China, with which New Zealand has recently signed a free trade agreement is tipped to become the world's dominant economy. The second biggest economy will be India, with which New Zealand is currently negotiating a free trade agreement.
But in that increasing demand for more food, New Zealand is not a bulk supplier of cheap food.
'If you want to supply cheap dairy products you go to Uruguay,” says David.
New Zealand is positioning itself as a high quality supplier to a discerning market. It is paying off. David says in China the contaminated milk scare hasn't scared people off Fonterra milk powder. Customers there are continuing to buy Fonterra because it is perceived to be a better quality product than the competition.





2 comments

Aussie

Posted on 05-02-2010 17:31 | By Pat

Gezzzz Why has food always been so much cheaper and better in Aussie....And its not a population thing


Millions

Posted on 06-02-2010 12:05 | By Pat

I knoiw 6 supermarket owners and I just remembered they are all worth........ Millions


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