The local dairy is part of the fabric of many communities
The local dairy is part of the fabric of many communities

The BulletinNovember 25, 2022

The increasingly perilous business of owning a dairy

The local dairy is part of the fabric of many communities
The local dairy is part of the fabric of many communities

Dairies are part of the fabric of New Zealand, but as a community reels following a tragic and fatal stabbing and challenges mount, some owners are looking to get out of the business altogether, writes Anna Rawhiti-Connell in this excerpt from The Bulletin. To receive The Bulletin in full each weekday morning, sign up here.

 

The ubiquity of the dairy and its place in local communities

The term “dairy” to describe a small owner-operated convenience store is unique to New Zealand. Travel overseas and you’ll be looked at very strangely when you ask where “a dairy” is. I’ve got three within 500 metres of my home and I am loyal to one because of the banter, which felt especially important during lockdowns. They are a part of the fabric of many communities, something that’s really evident in the photos of people gathered outside the Rose Cottage dairy in Sandringham yesterday following the tragic and fatal stabbing of a 34-year-old man working there. The Herald’s Kim Knight has a moving and raw account (paywalled) from that gathering.

Police minister asks for “please explain” on fog cannons

Police minister Chris Hipkins is calling for calm as emotions run high. Hipkins also wants an explanation from police why the Rose Cottage dairy was not given support from a government initiative to equip businesses with fog cannons to prevent robberies. Hipkins said last night on RNZ’s Checkpoint that on the face of it the dairy should have qualified for fog canon funding. The local neighbourhood support group says they made more than one attempt to get more security at the shop but the police refused their request.

Over-supply of convenience stores and insurance costs

Speaking to several dairy owners in Christchurch yesterday, the Herald’s Nathan Morton found one who is going to shut up shop and move back to India, regardless of whether he is able to sell his business. Others want to get out of the business but are restrained by lease arrangements. Safety remains the number one concern of those Morton spoke to but Christchurch also has an over-supply of convenience stores. “The market is pretty tough right now. If you put one up for sale, [the advertisement] sits there for quite a while before anybody ever shows interest. It’s so hard to find a buyer,” said one owner. About 30 small retail businesses in Hamilton don’t have any insurance cover anymore after multiple crime-related claims have pushed premiums and excesses up.

Smokefree bill will radically alter business model of dairies 

Dairy owners spoken to by Morton also cited the uncertainty around the impact of the Smokefree Environments and Regulated Products (Smoked Tobacco) Amendment Bill. That’s due back from select committee next week. The bill will ban young people from ever being able to purchase tobacco in their lives, reduce the levels of nicotine in tobacco products to very low levels, and reduce the number of places that can sell tobacco products. I’m not sure there’s a lot of disagreement about the net social, economic and health benefits of what’s been praised as world-leading legislation, but when it was announced last December, it was made clear that dairies would need to diversify.