Category: Business

Source: Radio New Zealand

A well-known Wellington Cafe is considering introducing a fuel surcharge in response to its suppliers hiking up their prices.

Smith the Grocer in The Old Bank Arcade on Lambton Quay has had its raw ingredients and services have go up because of rising fuel costs triggered by the war in the Middle East.

The cafe’s owner Kirsten Saunders told Checkpoint they were not “pulling the lever” yet but it was a “watch and see situation” with suppliers raising costs.

She said three out of eight of their suppliers had already added fuel surcharges to their products.

“One which is a meat supplier is applying a 4 percent across the board effective immediately and they’ve also advised that any increases that they get from their suppliers will be passed through to us and they’re expecting there to be some.”

Saunders said another supplier was applying a 5 percent increase temporarily while one supplier is increasing the price of eggs per box by a certain amount.

On the fuel application Gaspy, 91 fuel was an average of $3.48 a litre and diesel was averaging $3.89 per litre.

The impact of these charges on the cafe was yet to be determined as Saunders said they were waiting to see the next set of invoices.

It was also some relief that they cafe’s biggest supplier, Gilmours, hadn’t added a surcharge.

Saunders said they would rather avoid adding a surcharge, but their margins had been modest.

“Most of our costs are fixed, when the cost of ingredients goes up, we either need to absorb those costs which in the long term is not sustainable or we do need to pass it on.”

She said fluctuations in hospitality prices are common, especially with costs going up.

“We normally would make little adjustment to the specific items in the menu that was affected by that increase.

But when we’re getting increases across the board from suppliers it’s sort of a different kettle of fish.”

She said a surcharge would be the fairest way to do it because they can remove it or make it reflect the extra costs the business is actually incurring.

Saunders felt most of their customers were very loyal and understanding and as a result they would not respond too badly to the surcharge.

“No one is going to like it, none of us like it when all the prices go up do we, but it’s just a bit of a rock and a hard place.”

She said while they haven’t thought of exactly how much the surcharge would be, they have sought advice through Hospitality New Zealand who spoken with the commerce commission.

Saunders said according to the fair-trading act, the cafe could have a surcharge if it accurately reflects the genuine cost the business is seeing.

“We also need to comply with the commerce act which is that each business must make its own independent decision about whether to apply a surcharge and make sure there is no perceived coordination or collusion.”

In the three years that Saunders had owned the cafe she said it was doing relatively well but there were many financial obstacles incoming.

“I see a lot of others suffering more around this than we are, but it does feel like there’s a bit of a perfect storm brewing at the moment with lots of things outside of our control.”

Along with fuel costs, she said there were also increases in kiwi saver contributions, minimum wage and having to absorb Eftpos merchant fees.

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

• Services sector slump deepens
• All five sub-indices in retreat
• Negative comments leap higher
• BNZ says PSI “so poor, economy could soon be contracting”

New Zealand’s services sector has retreated for the third month in a row.

The BNZ-BusinessNZ Performance of Services Index (PSI) fell 1.6 points to 46.0 in March, well below its long‑term average of 52.8.

A reading below 50 indicates the sector – which accounts for nearly three‑quarters of the economy – is contracting.

BusinessNZ chief executive Katherine Rich said the services sector was clearly feeling the effects of the conflict in Iran.

“The industries that deal mainly in discretionary spending – accommodation, cafes and restaurants, and cultural, recreational and personal services – have been especially impacted, and this is likely to reflect a lack of consumer confidence,” she said.

All five of the index’s sub‑indices were also in contraction.

Activity and sales were the weakest, sliding sharply to 44.6, followed by new orders and business at 45.7.

Stocks and inventories fell to 46.2, employment to 46.4, and supplier deliveries to 47.3.

The mood in the sector was reflected by the share of negative comments, which jumped from 56.4 percent in February, to 69.1 percent in March.

Unsurprisingly, many of the comments cited the effects of the Middle East conflict.

BNZ head of research Stephen Toplis said that, in the wake of the report, there was unlikely to be any real improvement in the labour market in the year ahead, and it was hard to imagine conditions improving quickly for many industries in the services sector.

Toplis said the PSI reading was so poor that the combined Performance of Manufacturing/Services (PMI/PSI) indicator was suggesting the economy could soon be contracting.

“While we are not forecasting a recession, these data support our recent decision to significantly downgrade our growth expectations for 2026.”

He described today’s PSI as “a dose of reality”, after Friday’s Manufacturing Index was surprisingly strong at 53.2.

“Some of this undoubtedly represents some initial fallout from the energy price shock, which we fear will grow in impact through April,” he said.

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Some of New Zealand’s top exporters and business associations have signed an open letter calling on all political parties to back New Zealand’s free trade agreement with India.

The letter described the FTA as a “strategic necessity” for New Zealand’s economic security, but New Zealand First has hit back at the signatories, saying their involvement is an “appalling commentary.”

The government confirmed negotiations had concluded with India in December, but New Zealand First withheld its support over immigration concerns.

It means the government needs Labour’s support to pass the deal through the House, but Labour is still to decide whether it will back the deal.

The open letter, organised by BusinessNZ, was signed by 28 exporters and industry associations, such as Federated Farmers, Zespri, Seafood New Zealand, and Beef and Lamb New Zealand.

The letter said trade was critical to New Zealand’s prosperity, and the FTA was the next significant step forward.

“In an increasingly uncertain global environment marked by rising protectionism, geopolitical tension, and supply chain disruption, New Zealand cannot afford to stand still. Securing better access to India will help build resilience, spread risk, and strengthen our economic position,” the letter said.

“An FTA with India is not a luxury; it is a strategic necessity for our economic security.”

BusinessNZ chief executive Katherine Rich said bipartisan support underpinned the strength of New Zealand’s trade.

“New Zealand relies on global markets to drive growth, support jobs and lift incomes,” she said.

“That only works when there is consistency and confidence in our trade settings. That’s why we’re making this call to all political parties today.”

The open letter refers to the benefits of the Free Trade Agreement to a number of sectors, including horticulture, sheep meat, seafood, wine, honey, wood products, seeds and natural fibres, machinery, digital technology and services.

ExportNZ, which sits within the BusinessNZ network, said the deal would be a “major win” for exporters and the wider economy.

Its executive director, Joshua Tan, told Midday Report the letter was aimed at all political parties, not just Labour or New Zealand First.

“We want to have trade seen as a bipartisan, non-political issue here. We think that all political parties need to sign this deal and agree to it,” he said.

“India is on track to become the world’s third largest economy by 2030. Securing fair access to a market the size of India’s backs our farmers, growers, manufacturers, innovators and service providers, as well as the communities that depend on them.”

Tan said the sooner the deal was in place, the better.

“If we are too slow, sectors can be left at a disadvantage to other deals that India… are completing. Namely, the EU deal, which offers better access to the wine exporters, for example,” he said.

“So if we do get this deal in force before that, then we also stand to benefit from the access that the EU has negotiated. That’s why speed is the key here.”

The Meat Industry Association was one of the signatories.

Its chair Nathan Guy told RNZ political parties had a long history of supporting free trade agreements together.

Guy said the deal would remove a 30 percent tariff for the sheep meat sector, and was also significant for wool, pharmaceuticals, and blood products.

“It’s a fantastic deal for our primary sector at a time where there’s geopolitical issues raging around the world, we need this deal more than ever,” he said.

“We’re calling on the government to sign the deal, and we’re calling on political parties to get behind and back it.”

“Signing a contract blindfolded” – Winston Peters

New Zealand First leader Winston Peters said the letter was a “breathtaking” position for BusinessNZ to take.

“How they and the 28 other businesses and associations could have signed up to support the India FTA without knowing what is in it is an appalling commentary on them all,” Peters posted on social media.

“How on earth can there be any sort of proper analysis of the FTA if they haven’t even read the agreement?”

Peters said his office had asked that question to BusinessNZ, but had not received a response.

“This is tantamount to those businesses signing a contract blindfolded,” he said.

“If it is true that this support for the FTA is not based on the actual text but instead relies on media reports and conflicting perspectives from different parties, it is a terrible indictment on how they operate.”

“Issues and inconsistencies” – Labour

Labour leader Chris Hipkins said Labour had seen the open letter “from the businesses which would benefit from the trade agreement”, and it was important that any deal worked in the long-term interests of all New Zealanders.

Hipkins said Labour had been asking the government for a response to its concerns for almost two months, but the government was yet to provide the detail Labour had requested.

“There are issues and inconsistencies that still need to be clarified by the government to ensure any deal works in the long-term interest of New Zealanders,” Hipkins said.

“Once we’ve received the details and worked through all the advice, we will discuss as a caucus and make a decision about whether to support the legislation.”

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

The former head of failed insurer CBL has settled with the financial markets regulator over proceedings related to the company’s public share offer in 2015.

Under the settlement with the Financial Markets Authority, Peter Harris agreed to make admissions of liability relating to two breaches of the Financial Markets Conduct Act.

The settlement was announced one day before the public share float-related trial against CBL, and the executor of the estate of former director Alistair Hutchison, who died in 2021.

FMA head of enforcement Margot Gatland said the settlement was a significant milestone in the long-running proceedings that followed CBL’s collapse in 2018.

“The FMA has entered into a settlement with Mr Harris in respect of liability while allowing remaining issues relating to the appropriate penalty to be determined by the court,” Gatland said.

“While admissions have been made, the amount of any pecuniary penalty to be imposed and whether a banning order should be made against Mr Harris remain in dispute.”

Gatland said those issues would be determined by the High Court.

The penalty hearing against Harris was a separate matter to the trial starting Tuesday.

CBL was a share market high-flyer when it listed in 2015, rising to a value of around $750m before collapsing in 2018, triggering a string of investigations and legal cases by the FMA and Serious Fraud Office.

Last year, the former chief financial officer of CBL, Carden Mulholland, was ordered to pay more than $1.2 million in penalties and costs by the High Court, for being an accessory to the breaking of information disclosure rules.

In 2024, Harris and the FMA cut a deal to settle a civil case about market disclosures.

Under the deal, Harris was to admit breaches of rules for not disclosing to investors its insurance business needed to strengthen its reserves, unpaid premiums from its French business and official directions made to its Irish subsidiaries.

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

ANZ, New Zealand’s biggest bank, says it now expects three official cash rate (OCR) increases this year – in July, September and October.

But it also said it only expected the rate to lift to 3 percent, from 2.25 percent currently – not the 3.5 percent it expected previously.

ANZ chief economist Sharon Zollner said the most recent update from the Reserve Bank (RBNZ) had made the point that it expected to need to increase the rate if various conditions were not met.

“I think that was fair to interpret that as deliberate, and certainly the media appearances and the press conference gave the impression of more focus on inflation than on near-term growth.

“Or at least taking the longer-term view on growth, that a little bit of short-term pain might be worth it for a long-term gain, that kind of argument.

“We don’t have a strong view on July versus September. But we do have a pretty strong view that hikes will come before our previous call of December.”

She said she expected the rate to not need to go as high because it would be hard on the economy.

“Even though the OCR will still be low, in inverted commas, we think [increases] could be pretty powerful because confidence is weak and this is a negative income shock.

“You’re kicking the economy when it’s down, essentially. That’s why, in exchange for earlier hikes, we now see the OCR stopping earlier.”

Home loan rates could move higher, she said.

Wholesale rates have been moving up in the past week on news from the Middle East conflict.

“It started to move because of what’s happened in the Middle East and the fact that the peace talks didn’t go well.

“Now even the few boats that were getting through the Strait are going to struggle to do so … if things continue to move in that direction, then we could see some more upward pressure on mortgage rates potentially.”

ANZ said it was not a given that hiking the OCR would prove to have been the right thing to do in the fullness of time.

“The demand-side hit from this negative national income shock should not be underestimated; nor should the tightening in financial conditions already seen. However, the RBNZ committee will not want to repeat the mistake of the Covid era, when policy was kept too loose for too long.”

Zollner said the uncertainty of the outlook could not be over-stressed.

“A July kick-off for hikes is not a high-conviction view; it is just what we currently see as the single likeliest timing as we stare into the murk. Take everyone’s forecast with a generous pinch of salt – including both ours and the Reserve Bank’s. That’s just the world we find ourselves in.”

ASB has also revised its forecast. Its economists said they expected the OCR to rise in September, to an end point of 3.25 percent mid next year.

Sign up for Money with Susan Edmunds, a weekly newsletter covering all the things that affect how we make, spend and invest money

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Brightcove link: https://players.brightcove.net/6093072280001/default_default/index.html?videoId=6392786299112

Despite having just turned 14, Naia Talakai’s racking up the haircuts, working 6 days a week at Ōtara town centre.

He does his homework on the train to school as he is in the barbershop for a couple of hours every evening from Monday to Friday.

Saturday is Talakai’s busiest day of the week due to foot traffic from the famous Ōtara markets.

“A lot of people just walk by and when they see the cheap prices and they gotta stop by and give it a go” he said.

Talakai charges $20 for a cut, and operates out of a modified shipping container run by House of Hustlers.

It is a programme designed to foster entrepreneurship in Ōtara and is one of several initiatives operated by the community builders NZ trust.

“We’ve got kaupapa like the Pātaka Kai” chief executive Terangi Parima said.

“It’s open 24 hours a day, 24-7. That initiative is really about food rescue and sharing. And that stems off the food insecurity Issues that we’ve had here in our community. So a community response to a community need.”

Other programmes include a community garden, mobile bike hub, and a street safety scheme, while a carving school is just starting up.

Talakai was part of the trust’s youth collective and while volunteering on the Ōtara Christmas lights asked Terangi if he could start barbering at House of Hustlers. He passed a trial which involved cutting his brothers hair and is now signed off.

“We’ve given him the space to grow and the platforms to expose his mahi” Terangi said.

Talakai said he was appreciative of Terangi’s support and that she was like a sister to him – albeit a sister with high standards, especially when it came to keeping the barbershop clean.

“The standard for this space is excellent” he said.

Before starting at House of Hustlers Talakai had already been honing his skills for several years, cutting his grandfather’s hair before church on Sunday mornings.

” It was always fun to cut his hair he always left with a smile on his face” Naia says

After his Grandfather passed away Talakai decided cutting hair would be a good way to find some work

“I remembered his pair of clippers sitting in my room” he says.

Talakai takes his craft just as seriously now that he’s cutting hair for money “sometimes my clients think I’m nosy” he said, ” but I just I tell them what suits their head shape and head type hairstyle.

“But at the same time, always gotta satisfy the customer.”

And cutting hair isn’t the only part of being a barber, there’s the art of conversation.

“I always like the chatty people. so it’s not just awkward silence while I cut” he said.

If any of those awkward silences creep in, there’s nothing like the price of petrol to get conversation flowing again…

“It’s always the oldies talking about that one” Talakai said with a laugh.

He is now now working on building up a regular clientele, and hopes to open his own barber shop in the future.

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Infant milk formula (IMF) exporter a2 Milk says supply chain disruptions are making it difficult to meet Chinese demand, which is expected to see its full-year profit outlook fall short of expectations.

In a market statement, the company said it was experiencing temporary in-market product availability issues.

The issues involved the availability and cost of freight, production delays, longer lead times to meet changes to quality standards and changes to customs clearance requirements.

The company had revised its FY26, last updated in February, to reflect the market conditions.

• Revenue growth of low to mid double-digit percent versus FY25
• Gross profit margin to be about 14 percent to 14.5 percent (previously 15.5 percent to 16 percent)
• Depreciation and amortisation to be approximately $20 million (previously $20m to $24m)
• Interest income to be lower due to lower market rates and net transaction cash outflows
• Net profit to be little changed or down on FY25 (previously up)
• Capital expenditure of approximately $60 to $80m

The company said a range of key risks could materially impact expected revenue and earnings outcomes including, but not limited to, further delays in freight and clearance timing, trading upside and downside, challenging macroeconomic conditions, China IMF category dynamics and competitive intensity, product and supply related risks, cross border trade, foreign exchange movements, changes in interest rates, farmgate milk pricing and other commodity prices, regulatory changes and the Middle East conflict.

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Rural retailers are reporting the supply chain crunch due to impacts of war in the Middle East is flowing down to key agricultural goods.

Farming customers at major rural retailers Farmlands and PGG Wrightson are being warned that the firms were dealing with price increases being passed down to them by suppliers and manufacturers.

Farmer-owned co-operative Farmlands said prices were escalating for imported products like imported palm kernel expeller (PKE), fertiliser and animal feeds, as well as for plastic products and resins.

General manager of strategy Scott Brown said it had increased its orders and inventory to get ahead of further price rises, but assured supply levels were not an issue at present.

“We’re starting to see price increases coming through from our supply areas.”

Brown said there were obvious fuel and fertiliser price increases, but also second-order impacts and further flow-ons.

“Anything that uses especially fuel to be manufactured, shipped, transported. So if you look at plastics, resins, those areas we’re starting to see those price increases coming through.

“And that then will flow on probably to other general goods, as price inflation comes through in those other areas.”

He said manufacturers too were passing down the extra costs.

“We’re seeing it on our own product that we get manufactured coming through, that price escalation, whether that be shipping costs, whether it be manufacturing costs, through to end delivery costs.

“So we’re minimising as much as we can, but obviously we need to pass on those costs as they come through.”

Brown said it was pushing back as much as it could with suppliers to try to get the best deal for its farmers and growers, but expected the impact to be ongoing.

“The earlier we work with our farmers and growers in terms of what they need and locking that in, the better we can manage those price increases and give us certainty.

“We’re hoping that this will be short-lived, but we know even if there was resolution on Monday, the impact on the supply chain is going to last for quite some time.”

Brown encouraged farmers to talk with their representatives and plan what they might need over the coming months to try to get ahead of further price increases.

Meanwhile, agricultural service provider and rival retailer PGG Wrightson said it was also facing price increases passed onto them.

“Off the back of the significant increase in crude oil cost, we are seeing an increase in global shipping costs and local freight/distribution costs which are being passed onto us,” it said on its website.

“The increase in crude oil also applies to products or packaging made from plastic. Where able, we will continue to try to minimise price increases wherever possible.”

It said it was not experiencing supply delays at present, and was working with suppliers to find alternatives to countries that were restricting exports of commodities.

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Richard Allen has been named as the new Fonterra chief executive officer, succeeding Miles Hurrell.

More to come…

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

The cost of housing is making it difficult for people to pay their bills, with one-in-four delaying medical care and/or skipping meals in the past year.

“The sacrifices revealed in this data are not a cost-of-living story,” The Urban Advisory (TUA) co-founder and director Dr Natalie Allen said.

“They are an ongoing story about housing system failure.

“We are now two years into this survey and the patterns are not changing. They are hardening.”

The second annual Housing Survey by TUA drew on the experiences of 5232 New Zealanders surveyed between August 2024-January 2026.

Dr Allen said the data could help inform commercial decision-making, as the country looked to invest more into infrastructure.

The issues

She said making ends meet was something faced by ordinary households – renters, moderate-income families and first-home aspirants – and wasn’t limited to people living in extreme poverty.

However, there was a gap in sentiment between those who owned and those that rented.

While 90 percent of homeowners felt stable and secure in their housing, only 57 percent of renters said the same.

Renters also reported colder and damper homes, lower energy efficiency and less control over their living conditions.

What the survey found

• 50 percent of respondents worry they cannot pay for housing in the future.
• 45 percent are dissatisfied with the housing options available to them.
• 28 percent delayed medical appointments because of housing costs.
• 91 percent say housing costs too much relative to income.
• 25 percent skipped meals
• 76 percent rank safety from natural hazards as the most important property feature, above price and outdoor space.

What people want

The survey indicated New Zealanders weren’t dissatisfied with renting as a way of living, but were dissatisfied with the quality and insecurity of the rental homes available to them.

Allen said renting was a viable tenure option, but only if the product improved.

“Renters are paying more for less,” she said. “That is a structural failure with nationwide implications, not a set of unfortunate individual circumstances.”

Housing for an ageing population

Nearly half (49 percent) of people planning to retire in the next 10 years expected to downsize.

Most plan to stay in the region where they currently live, yet the market offered very few well-located, accessible, compact homes at the quality and price required.

Allen said it was not a niche problem, describing it as one of the strongest signals of future housing demand.

The commercial opportunity

The market wasn’t responding at scale to the demand for secure, long-term rental options by 52 percent of respondents.

TUA co-founder and director Greer O’Donnell said internationally proven models such as build-to-rent, shared equity, co-operative housing, community land trusts, progressive ownership and new-generation retirement living remained undersupplied in New Zealand.

“There is a large and growing segment of demand that the current market is not serving,” O’Donnell said.

“Diversifying New Zealand’s housing stock is now both a social necessity and a commercial imperative.”

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand