Pie-in-the-sky prices for humble dish
Humble pie might be hard to swallow, but what about the rising price of a hot meat pie in New Zealand?
Statistics NZ data released this week shows the average price of a meat pie has risen 60 per cent since 2006 – and inflation isn’t completely to blame. And, if you’re struggling to chew on that, then brace yourself because gourmet pies that have broken through the $10 price barrier are becoming a more common sight. Wellington deli and cafe Pickle & Pie co-owner Tim Tracey sells handmade, freshbaked pies for $10, or $16 with pickles, gravy and mashed potato. While there was a time and a place for the service station pie, there was ‘‘100 per cent’’ difference in taste when compared with their gourmet version, he said.
There were ‘‘heaps of reasons’’ for the $16 price tag, including the overheads associated with the Lombard St location in Wellington’s CBD, the cost of table service, and the cost of meat having risen substantially during his 20 years in the industry.
‘‘We only use prime cuts. There’s no offal. It’s all free range and locally sourced,’’ he said.
The price was reflected in the taste and quality of the pie.
The pie of the day at Pickle & Pie was made on site with different fillings each day.
‘‘If you’re paying more for things, you’re going to have to charge more for things.’’
Nada Bakery general manager and Bakery Industry Association NZ (Bianz) board member Michael Gray agreed. ‘‘If you’re going to stay in business, you’ve got to pass those costs on. There’s only so much you can absorb.’’
A number of factors had contributed to the rising average cost of a pie since 2006, Gray said. Among them were ‘‘significant wage cost increases’’ over that time.
The adult minimum wage was $10.25 in 2006. It is now $16.50.
The rising costs of ingredients was also a factor, Gray said.
‘‘Beef and lamb has gone up around 60 per cent, there’s been droughts in Australia. The bulk of New Zealand wheat comes from Australia. Then Russia has had wildfires that wiped out the wheat crop, which put pressure on other markets,’’ he said.
‘‘Butter or margarine – everyone knows how much that’s gone up. Nowadays we pay $5 for a brick of gold.’’
Kiwis also had ‘‘more experienced’’ palates these days, compared to back in 2006.
‘‘Manufacturers are trying to make a great product, to make sure it lines up with the customers’ expectations.’’
The Stats NZ data set – part of the monthly Food Price Index – showed the average weighted retail price of a hot meat pie was $2.68 in June 2006.
But by December 2018, it was $4.30, an increase of just over 60 per cent since 2006.
Inflation on the cost of food products over the same period only accounted for 73 cents of the rise in price, according to the Reserve Bank’s inflation calculator.
A Big Ben beef mince pie from a Night ‘n Day store on Manners St in Wellington, cost $3.90 this week.
A spokesperson for Statistics NZ said the agency collected about 19,000 prices from 560 retail outlets to provide data for the Food Price Index.
Statistics NZ collected the price for a ‘‘hot meat pie’’ from service stations as well as takeaway outlets from 12 regions across the country.