Fish price hard to swallow

Liam McLean with a seafood dinner at Auckland Fish Markets. Photo / Jason Dorday

We might be surrounded by sea but Kiwis continue to pay top dollar for one of our most bountiful resources - fish.

Latest statistics show that, on average, fish and seafood have increased in price by 18.6 per cent in the past four years.

Like lamb, most of our fish is exported which pushes up prices for the domestic consumer. For a family of six, such as the Rangitaurias, buying fish is difficult.

"I buy it when I can but it's expensive. I can buy meat at about $10 a kg but fish is about $20-25 a kg," Pirihita Rangitauria said.

The mother of four said her partner, Jordan Edmonds, loved snapper but found it far too expensive. When she buys fish she chooses the less-expensive hoki at the supermarket.

"It's a luxury. The only time I buy it is when it's on special."

Consumer Price Index data shows that between 2005 and last year, snapper increased in price from $28.73 to $37.40, blue cod from $26.78 to $34.36, tarakihi from $19.20 to $26.67 and gurnard from $18.41 to $26.42.

Statistics New Zealand figures show the price of fish and seafood has risen 18.6 per cent on average between June 2006 and August.

Fish wholesaler Scott McCashin, general manager of Westfleet, said fishermen get paid for the price of whole fish.

It takes 3kg of whole fish to produce 1kg of fillets.

"So if a fisherman is paid $2/kg, the price goes up to $6 for fillets," he said.

He said processing plants added on 25 per cent, freight and packaging added 10 per cent and retailers up to 35 per cent.

The cost of fish can fluctuate wildly - at Foodtown in Grey Lynn this week, salmon was on special for $22.99/kg. It can cost up to $35/kg.

Food and Grocery Council chief executive Katherine Rich said prices varied because of the time of year, quota arrangements, supply-chain network structures and retailer promotions.

She did not agree the price of fish was too expensive. Included in the price was the costs of filleting, storage, staff and logistics, she said.

"Being a fresh, chilled product the storage and distribution chain can be expensive. Filleting is also very labour intensive.

"An additional cost for fresh product is wastage. Depending on the retailer, they could allow for up to 30 per cent of the product they purchase ending up not being sold in its intended fresh fillet form."

Fishing companies often passed on the cost of leasing quota to the consumer, she said.

Domestic consumption has dropped from 34,337 tonnes in 2005 to 28,539 tonnes last year. Rich said price was not the sole reason domestic consumption was decreasing.

The fishing industry contributes more than $1.3 billion in export earnings to the economy every year and employs 9000 people. The total amount of fish exported went from 309,038 tonnes, worth $1.2bn, in 2005 to 256,854 tonnes, worth $1.4bn, last year.

New Zealand Institute of Economic Research economist Shamubeel Eaqub said fish prices were determined by international demand. Large supermarket chains overseas had greater buying power and could demand lower prices from suppliers.

Do you have a consumer story? email joanne.carroll@hos.co.nz or phone (09) 373-9341.