Woolworths justifies huge price disparity for Kiwis for household staple

Yahoo

7 days ago

Woolworths has revealed why it's continuing to sell a New Zealand-made dairy product cheaper in Australia than what Kiwis are forced to pay in its country of origin.
Butter prices in the land of the long white cloud have increased by a staggering 65 per cent in a year, worsening cost-of-living pressure on shoppers. This week, a block of 400-gram New Zealand-made Westgold butter was selling for $6.50 (NZ$7.00) in Woolworths' Australian stores, but across the ditch they were retailing for NZ$9.95 (A$9.19).
It is a similar story for New Zealand-made Mainland varieties, with 250-gram butter priced at $6.50 (NZ$7.00) in Australia versus $8.90 (A$8.15) in New Zealand.
Woolworths acknowledged shoppers in both countries face cost-of-living pressures, and it claimed 'delivering value wherever we can continues to be our priority'.
When it comes to butter prices, the company indicated trans-Tasman pricing is complex because it's influenced by multiple factors, including tax and global markets.
'A range of factors can influence the price of New Zealand-made products sold locally and in Australia, and Woolworths operates separate buying arrangements across the two countries,' the company told Yahoo News in a statement.
'For butter, for example, New Zealand is the largest exporter globally, and current New Zealand retail prices reflect an increase in the global price paid to producers that came into effect on May 1. Australian prices for the same product sourced before May will reflect the lower global price.
'Different tax arrangements and rates can be a factor, and purchase volumes and different promotional pricing activities can also influence retail prices on either side of the Tasman.'
Woolworths was unable to comment on whether butter prices would increase in Australia when new product is sourced from New Zealand.
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While there's an appearance of competition in the New Zealand supermarket space, like Australia, the sector is dominated by a duopoly. The brands PAK'nSAVE, New World and Four Square are all owned by local cooperative Foodstuffs, while Countdown and Woolworths are operated by Australia's Woolworths Group.
Prices for butter were unsurprisingly similar across the nation's supermarkets, with Mainland selling for NZ$9.95 at New World and NZ$8.49 at PAK'nSAVE.
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