Lucy Craymer

WELLINGTON, (Reuters) – New Zealand’s commerce minister stated Monday that the country wants to make changes in its supermarket sector. The presence of two dominant players raises concerns about competition.

Two players dominate New Zealand’s supermarket market: Woolworths and Foodstuffs NZ.

The New Zealand government and New Zealanders are very clear about the fact that the supermarket industry is not working. In a statement, David Clark, Minister for Commerce and Consumer Affairs stated that the supermarket industry is not fair and it’s no longer competitive.

“The duopoly must be changed, and we’re preparing the legislation.”

This government plan, to establish a variety of new requirements will assist in reducing prices and fighting inflation that has been running at three-decades high.

The rules include a code of conduct that will be mandatory for supermarkets. This creates an independent regulator in the industry. It requires pricing to be consistent and allows grocery suppliers to bargain collectively.

The Commerce Commission had recently recommended that supermarkets be restructured to improve competition, increase quality, and variety of grocery and other services available to New Zealanders.