Supermarket bread war hits dairies

COMPETITION: Dairies struggle to compete with the $1 a loaf offers from supermarkets.

Last weekend dairy owner Raj Patel was forced to throw out 20 loaves of unsold bread.

His is one of many Wairarapa dairies feeling the pinch of national supermarket chains' bread price wars - finding it "impossible" to compete with the big stores' $1 deals.

Countdown, New World and Pak n' Save stores have been offering loaves of Homebrand, Budget and Giant Bread loaves for a dollar for the last month.

While supermarket punters are loading up their trollies, business has been lagging for the smaller convenience stores, including Mr Patel's Hospital Food Market on Te Ore Ore Rd.

Mr Patel said bread usually sells well at the Food Market - but, since the "bread wars", the once biggest financial staple is languishing on the shelves. "It's affecting us," said Mr Patel. "I've now had to cut down my bread orders by half or less.

"The last time I did my usual order, I had to feed the bread to the animals."

The Food Market sells bread at $2.20 per loaf, and $5 for three loaves. Mr Patel said smaller convenience stores cannot undercut their prices, as they are often unable to buy in bulk - and need to recover the costs of purchasing.

"Our hands are tied. Supermarkets are big buyers - that's how they're able to provide these deals. Customers come in and say, 'this bread is too dear'. But, we can't buy in those big numbers.

"The supermarkets are big, we are small, and we can't fight it."

Also dealing with a dip in business is West End Dairy on Pownall Street.

The dairy's owner, also named Raj Patel, said customer numbers have shrunk since the one dollar deals. "They might come in and get a few other things, but they'll mainly get bread and milk," said Mr Patel.

"But now people just aren't coming in as often. We're not happy at all."

Mr Patel said the dairy tries to ensure affordable prices, and sells bread for the same price as the Hospital Food Market. "But people don't want to pay $2.20 when they can pay a dollar."

While the Hospital Food Market and West End Dairy struggle, other convenience stores are philosophical.

Renall Street Store owner AJ Valland said business had not been affected. "Supermarket specials always affect convenience stores - but there's nothing we can do about it."

One dairy owner said he is selling two loaves of bread for $4, which is still attracting customers. "Our customers know we'll be offering cheap prices all year. The $1 deals are only temporary."

Conversation on the Times-Age Facebook page shows the novelty of $1 loaves of bread has not worn off for Wairarapa shoppers.

Commenters say the cheap deals are "great", "better for your pocket" and "a good deal for supermarket punters".

While some concerns have been raised about the nutritional value of Budget or Homebrand bread, shoppers seemed unfazed.

"It's good for the low-income families who struggle to have enough coin for bread and butter for their growing families," said Claire Karena.

Kathleen Langford added: "If you fit your veggies and fruit in, the $1 bread is fine.

"If you can save on one thing, put a bit more towards something else that is increasingly expensive, I'd say do it."

Margaret McNaughton said: "At the end of the day, bread is bread."