DISRUPTIONS IN ONION SUPPLY CHAIN IMPACT CONSUMERS INTERNATIONALLY

Due to a challenging growing season in New Zealand – supermarkets in Fiji have consequently experienced shortage of supply of onions. Caused by unfavourable weather conditions, this supply chain disruption has resulted in a hike in onion price, costing nearly $2 more for the same period a year ago.

A recent product and market analysis by the Fijian Competition and Consumer Commission (FCCC) reveals there is a significant price hike for onions. After assessing the market, the Consumer Council of Fiji (Council) has stated that this transitory issue will be normalised in a few weeks, whereby consumers can be reassured the supply of onions will be restored in shops and supermarkets.

Since September 2022, New Zealand has announced continuous increase in the cost of food products, compounded by a high demand for fruits and agricultural goods alongside influence of unfavourable weather, pressure from worldwide shortages, growing cost of production fertiliser and packaging, which have contributed to the unfavourable situation.

Several traders in Fiji have imported onions from the United

States throughout the holiday season to fulfil local demand, incurring additional freight costs – inevitably reaching consumers through hiked prices in shops and supermarkets. However, the Government of Fiji is working closely with the New Zealand Commerce Commission to monitor the situation in order to determine the most effective solution to the shortfall.

“It is important to acknowledge that the prices of basic food items are regulated by sections 44 and 51 of the FCCC Act 2010 and the Fijian Competition and Consumer Commission (Price Control) (Food Item Prices) Order 2021”, stated the Deputy Prime Minister and Minister for External Trade, Co-operatives and SMEs, Manoa Kamikamica. In the interim, the Ministry of External Trade, Co-operatives and SMEs is taking all proactive measures to mitigate the impact felt by consumers – collaborating with the FCCC and the Council to ensure traders do not violate consumer protection provisions outlined in the

FCCC Act of 2010 – especially in regards to overcharging.

More broadly, the new Government will start exploring diversification of sources of key commodities such as onions, where possible in the medium term. It is important to note that prices are driven by the movement of Worldwide market prices, supply and the cost of importation.>Ministry