Woolworths, one of New Zealand's supermarket chains, has announced at the Horticulture NZ conference in Tauranga that it is experiencing a full supply of nearly all locally grown fruits and vegetables for the first time since the disruptions caused by Covid. This availability is attributed to an extended period of favorable growing conditions, resulting in a market abundant in supply.
Glenn Bewly, head of Woolworths' vegetable and horticulture buying team, discussed the challenges of balancing supply and demand, especially under the current economic pressures. An IPSOS NZ survey highlighted the 'cost of living' as the foremost concern among customers, a situation that is expected to persist despite recent economic shifts from inflation to deflation.
Bewly emphasized the importance of delivering value to customers, noting that high yields and quality produce from growers have allowed for exceptional retail value, leading to record-breaking sales volumes. However, he acknowledged the difficulty in boosting consumption to match the levels of supply, stating, "This has made for a challenging market. We are collectively working to grow consumption levels of fruit and veg."
Woolworths has made significant investments in its distribution capabilities, including the opening of a second state-of-the-art fresh produce distribution center, ensuring national coverage and optimal freshness and quality of products. The company has also focused on enhancing staff expertise and passion for produce through its Cultivate program and 'The Fresh Commitment' initiative.
Additionally, Woolworths is implementing chilled front-of-store displays for temperature-sensitive products like strawberries, aiming to improve shelf life and product quality for consumers. "We know for highly temperature sensitive lines spending time outside of a chilled environment can have a detrimental effect on shelf life," Bewly added.
Source: RuralNews