Economist warns breaking up supermarkets risks unintended costs
Economist warns breaking up supermarkets risks unintended costs
This episode featured as part of the Agribusiness segment in partnership with BNZ.
Breaking up New Zealand’s supermarkets risks unintended consequences that could leave rural communities worse off, Lincoln University Professor of Agricultural Economics Alan Renwick says.
He says the supermarkets are not the whole story, with logistics, packaging and labour costs widening the margin between producers and shoppers.
“I don’t think we can put all the blame on the supermarkets for high prices that we are facing,” Renwick says.
Rural New Zealand could lose out if shared distribution and cross-subsidies unwind, he says.
“We do need to be careful that in trying to tackle that price, we’re not actually making things worse,” says Renwick.
This episode featured as part of the Agribusiness segment in partnership with BNZ.
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