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Horticulture New Zealand is calling for a code of conduct to be set up following a survey of supermarket mark-ups on fruit and vegetables.
The Green Party surveyed 75 producers and growers around the country, and claims the major supermarkets are hiking prices by up to 500% in some cases.
However, the survey found despite the high price to shoppers, fruit and vegetable growers are not benefitting.
The survey found that only 15% of growers report that their business runs at a profit, and 87% of growers are forced at times to sell their produce at less than it costs to produce.
Spokesperson Sue Kedgley says the survey suggests that unfair pricing practices on the part of some supermarkets are decimating many fruit and vegetable growers and putting their industry at risk.
"Supermarkets' massive mark-ups on fresh local produce is at the expense of both consumers and producers, as the low prices growers were getting for their produce was not being passed onto consumers," says Kedgley.
"Serious questions need to be asked about why supermarkets put exorbitant mark-ups on fresh produce, while mark-ups on processed foods are normally around 23%."
The Greens and Consumer New Zealand are calling on the government to step in and investigate. Horticulture New Zealand Chief Executive Peter Silcock agrees, and thinks the government could go even further.
Silcock is suggesting a code of conduct, or even an ombudsmen to be appointed. He says the government should look at what has been done in similar situations overseas.
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