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Enhancing Food Security <strong>and</strong> Physical Activity <strong>for</strong> Māori, Pacific <strong>and</strong> Low-income Peoplesprocessed <strong>food</strong>s, restrict hydrogenation of oils, <strong>and</strong> reduce the sugar content of23 28beverages. Elsewhere, it has been suggested that incentives <strong>for</strong> positive outcomesare likely to be more palatable to the <strong>food</strong> industry than restrictions or regulation, <strong>and</strong>may be more effective than undertaking actions that the <strong>food</strong> industry will resist. 23In contrast, Sugarman 39 has argued that there are limits to the degree <strong>and</strong> speed ofchange that can be expected from the <strong>food</strong> industry under a voluntary cooperativeapproach. He suggested that while industry is needed as an ally, voluntary agreementswould not work due to the conflict of interest between sacrificing profits <strong>and</strong> changing the<strong>food</strong> supply. Instead, he proposed a per<strong>for</strong>mance-based regulatory approach, whichwould be outcome focused. As an example of this approach, the <strong>food</strong> industry would berequired to ensure that fewer schoolchildren become obese. Industry would there<strong>for</strong>e begiven the task to find ways to meet this legally en<strong>for</strong>ceable goal.Midstream: DistributionThere is a growing interest in ‘<strong>food</strong> miles’ or the ‘carbon footprint’ caused by longdistance <strong>food</strong> distribution, driven by concerns about climate change. It is generating aresurgence of interest in locally grown <strong>food</strong>s, <strong>and</strong> calls <strong>for</strong> country of origin labelling on<strong>food</strong>. Some New Zeal<strong>and</strong> retailers have responded by labelling country of origin onfresh produce, which gives consumers the choice to purchase locally grown or not. 40There has been discussion, however, around the need to differentiate between ‘<strong>food</strong>miles’ <strong>and</strong> the ‘carbon footprint’. Food miles are considered a poor indicator of41 42environmental impact. Food that has travelled a long distance, <strong>for</strong> example fromNew Zeal<strong>and</strong> to the United Kingdom, may have a lot of <strong>food</strong> miles, but a much smallercarbon footprint due to production methods. 43The impact of a local distribution system on <strong>food</strong> <strong>security</strong> is uncertain. While it wouldseem intuitive that <strong>food</strong> grown locally would be more af<strong>for</strong>dable, this is often not thecase. Further analysis needs to be conducted on the benefits of a local <strong>food</strong> supplychain, 42 including consideration of <strong>food</strong> <strong>security</strong> <strong>and</strong> cost implications alongsidesustainability <strong>and</strong> environmental issues.Downstream: RetailSupermarkets in New Zeal<strong>and</strong> are dominated by two <strong>food</strong> companies: Foodstuffs <strong>and</strong>Progressive Enterprises Limited. Progressive is a subsidiary of the Australian companyWoolworths Limited. It operates the Foodtown, Woolworths <strong>and</strong> Countdownsupermarket br<strong>and</strong>s <strong>and</strong> is the franchise co-ordinator <strong>for</strong> FreshChoice <strong>and</strong> SuperValue. 44Progressive Enterprises controls approximately 42 percent of the New Zeal<strong>and</strong> grocerymarket. 44 Based on data from the Retail Trade Survey, 45 this is likely to representannual sales of approximately $6.3 billion. Foodstuffs (New Zeal<strong>and</strong>) Limited consists ofthree regionally based companies (Auckl<strong>and</strong>, Wellington <strong>and</strong> South Isl<strong>and</strong>). Foodstuffsoperates the New World, Pak’nSave, Four Square, On the Spot, Shoprite <strong>and</strong> WritePrice br<strong>and</strong>s. 46 Foodstuffs total wholesale turnover <strong>for</strong> the year ending 2008 was$7.6 billion.There are five core areas where supermarkets can influence the diet of consumers,according to Hawkes 47 , <strong>and</strong> we will address these in turn:• location <strong>and</strong> <strong>for</strong>mat of stores,• <strong>food</strong>s sold in stores,• prices charged,110

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