Full Breakdown
National Party proposes splitting Foodstuffs co-operative amid grocery-price debate
By Drooid · · How we work
Proposal to break up the co-operative
The National Party’s election platform includes a plan to divide the Foodstuffs co-operative into two separate entities. The proposal must be approved by the Commerce Commission, which previously found that the co-operatives did not genuinely compete with each other.
Background and regulatory context
Foodstuffs operates as a co-operative that pools buying power, supply chains and support services for its member stores, including New World, Pak’nSave and Four Square. The Commerce Commission’s earlier assessment concluded that the members were not true competitors, a finding that underpins National’s rationale for a structural split.
Projected consumer impact
A new analysis commissioned by the Ministry of Business, Innovation and Employment and conducted by Sense Partners estimates that dividing Foodstuffs could lower household grocery bills by $3.85 to $25.38 per week by 2035, depending on shopping volume. The study presents the potential savings as a range rather than a guaranteed outcome.
Local supermarket owners push back
Owners of several independent stores publicly questioned the plan’s effectiveness.
- Pak’nSave Hastings asked, “How does adding cost to the system make groceries cheaper?” and warned that duplicated costs would likely raise prices.
- Four Square Mahora Hastings emphasized its daily competition with New World, Pak’nSave and Woolworths, noting that it already strives to keep shelves full and prices low.
- New World Masterton reiterated its commitment to value and local service, expressing uncertainty about how a split would translate into cheaper groceries.
Political context and competing proposals
The cost of living is a central election issue. The Labour Party announced a separate policy to outlaw price-gouging, proposing that large firms with significant market power be prohibited from charging excessive prices for essential goods or paying unfairly low prices to suppliers if elected in November. This stance offers an alternative approach to addressing grocery affordability.