Price Rises Bite Families; Food Costs at 18-Year High

By MITCHELL, Naomi; FAIRFAX

Nelson families are facing an increasing battle to put food on the table, with new statistics showing that soaring food prices have reached an 18-year high.

Statistics New Zealand’s latest food price index figures show a rise of 8.2 percent in the year to June – the highest annual increase since June 1990, when a rise of 10 percent was recorded after a GST increase the previous July.

The increase has prompted renewed calls for the Government to help struggling families.

Andrew and Tasha Goodale, of Stoke, would support any move to reduce the increasing cost of putting food on their table for children Connor, 3, and Alyssa, 18 months.

Mr Goodale, a production manager at a joinery company, said he worked an extra job for four months of the year to increase the family’s income.

“Trying to feed a family of four on fresh veges is very difficult. Broccoli is more than $3 a head.”

They have switched to frozen vegetables to cut the weekly food bill.

The family buys three or four bottles of milk a week, and said the increase in dairy prices had been particularly noticeable. It also concerned them that soft drink was so cheap in comparison.

“They should take a dollar off milk and put it on fizzy drink,” Mr Goodale said.

The statistics show that on an annual basis, grocery food prices rose 12.1 percent, with milk up 22 percent, cheddar cheese 62 percent, bread 15 percent and butter 87 percent.

Fruit and vegetables were up 9 percent for the year while meat, poultry and fish rose 4.4 percent.

Most economists now believe that Reserve Bank Governor Alan Bollard should begin cutting interest rates as early as next week, but say it is a “line ball call” .

The Green Party said the Government should increase benefit levels and extend the in-work tax credit available through the Working For Families scheme to beneficiary families.

“It’s terrible that children are going hungry in a food- producing country like New Zealand,” social development spokeswoman Sue Bradford said.

Federation of Family Budgeting Services chief executive Raewyn Fox said the rising price of milk was a particular concern because it was such a staple food for families.

Nelson retiree Trish Witt, 61, said food price rises “absolutely incensed” her.

She said she was never much of a milk drinker but had given up eating cheese because of the cost.

Mrs Witt said she worried how families were able to afford to feed their children healthy food when prices were so high.

She used to feed her children a slice of cheese as a snack, because it was high in calcium. “I don’t think mothers could do that now.”

Tony Carter, managing director of Foodstuffs New Zealand, which operates New World and Pak’n Save supermarkets, said the company had noticed that shoppers were opting for more budget brands. They had also been “trading down” on sizes – for instance, choosing smaller blocks of cheese.

Salvation Army Community Ministry manager Major Jill Knight said the need for assistance throughout the Nelson region had remained strong in the past month.

Winter brought more demand for food and accommodation, and school holidays also put pressure on parents because they had children home all day, which increased food and power bills, she said.

Food banks used all they had but the level of donations seemed to be the same.

Golden Bay community worker Sheryl Nalder said there was still a steady demand for the services of the local food bank.

Fortunately, people had donated more fruit and vegetables recently because of the increased awareness of poverty in the region, she said.

Nelson Women’s Centre coordinator Carrie Mozena said food prices were affecting everyone. “Not only are families struggling for food, they are also struggling for shelter.”

Emergency accommodation in Tahunanui was now almost always full and people were being turned away.

The centre was fortunate to have received donations of some food items but it always needed more, she said.

Finance Minister Michael Cullen said the food price index rise “only confirms what New Zealanders already know” – that the global commodity boom was putting considerable pressure on household budgets.

“It is important to remember that our economic challenges are not of New Zealand’s making. The global increase in the prices of petrol and food are outside of New Zealand’s control.

“From October 1, all New Zealanders will get a tax cut that should provide some relief from rising prices.”

See INTEREST RATE CUTS

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(c) 2008 Nelson Mail, The. Provided by ProQuest Information and Learning. All rights Reserved.