If that’s the case, what my farmer and I saw in Australian supermarkets on recent trips suggests it’s no better on that side of the Tasman.
Prices there seemed much the same as prices here, especially when GST applied here and not there was taken into account.
That said, an increase in competition would be welcome here and that will be more likely now the government is establishing an express lane for supermarkets.
The Government will remove barriers preventing competitor supermarkets from launching or expanding in New Zealand with a series of urgent legislative and policy changes Economic Growth Minister Nicola Willis says.
“We’re creating an express lane for new supermarkets to boost competition and deliver better deals for Kiwi shoppers.
“Earlier this year we ran a Request for Information (RFI) process asking what would help challenger supermarkets take on the current duopoly.
“The responses revealed widespread frustration with restrictive zoning, slow consenting, and cumbersome regulations that make it extremely difficult for new competitors to gain a foothold in the New Zealand grocery sector.
“In response to this feedback the Government has agreed to:
- Legislate so that new supermarkets which would improve grocery competition regionally or nationally will qualify as fast-track referrable projects under the Fast-Track Approvals Act. Legislation will be introduced to Parliament in November and passed by the end of the year. It will be supported by a new Government Policy Statement on Grocery Competition.
- Streamline building consenting processes for new supermarkets by selecting a single building consent authority to standardise and streamline building consent processes for grocery developments that would enable competition regionally or nationally.
- Amend Building Act regulations to facilitate pre-approved “MultiProof” building plans for multiple grocery developments.
- Improve the operation of the Overseas Investment Act regime by clarifying the pathways available for grocery investments, including through grocery-specific provisions in the Ministerial Directive Letter.
- Amend the Commerce Act to better combat “predatory pricing” with the introduction of an objective economic test for the prosecution of firms misusing their market power to exclude or stamp-out competitors.
- Actively explore options for potential importers of food to bring new product lines into the country.
“The responses to the RFI revealed five prospective new domestic competitors and credible growth aspirations among several existing grocery retailers.
“Ultimately those businesses will make their own investment decisions about whether and when to launch new supermarkets – the Government’s policy changes are intended to give them more confidence to do so. . . .
The government is doing what governments should do – making it easier for businesses to do business and then leaving it up to them to invest, or not.
- “Some respondents to the RFI argued that the only way to truly improve supermarket competition is for the Government to forcibly break up Foodstuffs and/or Woolworths due to their entrenched market positions.
- “A decision to restructure the supermarkets is not a decision that would be taken lightly. It would be a significant intervention that would carry costs and risks that would need to be rigorously weighted against the potential benefits to shoppers.
- “A cost-benefit analysis is underway on specific options for restructuring the duopoly and will inform future advice I intend to take to Cabinet on whether further legislative changes are required to improve competition.
- “Our objective is a more competitive grocery market that delivers better prices and more choice for Kiwi shoppers. We remain open to potential market-led solutions that may be put forward by the major incumbents. . . .
The fast track policy has the support of the New Zealand Initiative:
The Government’s supermarket package adopts the right strategy for competition – remove barriers to entry and open the door to investment.
That is the core approach The New Zealand Initiative has championed for years, including in a May 2025 research note, A Fast-Track Supermarket Entry and Expansion Omnibus Bill, setting out a rules‑based alternative focused on planning, consenting and overseas investment. We shared it with Ministers, then released it publicly.
The backbone of the proposed package aligns closely with the Initiative’s recommendations.
The Government noted restrictive zoning, long consenting and site scarcity have posed substantial barriers.
The Initiative previously proposed a grocery-competition‑focused fast‑track that bundles multi‑site rezoning and consents, integrates Overseas Investment decisions, and adds independent economic expertise to panels – all with targeted overrides of planning gatekeeping that frustrates entry.
The Government’s package tracks this direction. It recognises competition as a public interest in consenting, creates national‑level certainty for building approvals, and signals an open posture to foreign investment. Those are the levers that matter most for market entry at scale.
“The Government has chosen the right lever – enable entry rather than try to design the market,” said Dr Eric Crampton, Chief Economist at The New Zealand Initiative. “Lowering barriers is how we discover whether incumbents have been underperforming or overpricing: if they have been, a new entrant can eat their lunch while bringing us better lunches at lower prices.”
“This is very close to the architecture we set out in May,” said Dr Benno Blaschke, author of the Initiative’s research note. “The pro‑competition fast‑track, a single consenting playbook, streamlined building consent and a clear OIA pathway create favourable conditions for credible entrants to scale. That is the heart of the reform.” . . .
Ele Ludemann is a North Otago farmer and journalist, who blogs HERE - where this article was sourced.
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