Shoppers feel pinch in hip pocket amid food supply chain chaos

Back hip pocket strain at checkout is expected to eat away at household budgets for the rest of the year.

Due to a combination of the war in Ukraine, which has led to increased fuel costs, labor shortages due to the pandemic and weather disasters – “unprecedented“Pressure and chaos are overwhelming Australia’s food supply chains.

Australia Today’s Steve Price talks to AusVeg spokesperson Tyson Cattle about why fruit and vegetable prices are rising.

With specialty tomato and lettuce varieties hitting an all-time high, greens will soon follow, with zucchini, beans and broccolini all set to rise in price, along with berries, milk, beef and other staple foods.

As farmers are forced to withdraw their operations, shoppers are warned to expect more items not to be available on supermarket shelves.

The east coast has also felt the pinch of this year’s ‘extraordinary’ rain events, with Victoria, who relies on Queensland growers through the winter, left dry without produce, AusVeg spokesperson Tyson Cattle told Australia Today.

“We are also facing significant costs in production pressures and we have essentially, for two years, been like everyone else”

“Fertilizer prices, chemical prices, labor costs, fuel costs, everything has gone up for a horticulture business,” he said.

“I guess Queensland events have really seen a big increase, and we’re only really seeing them now.”

– Tyson Cattle

Meanwhile, the president of the Victorian Farmers Federation Emma Germano warns that many farmers were still not covering their production costs and that consumers were likely to see more shortages.

“I think we’re going to see more of that as we go along,” she says. “It’s inevitable that prices will go up.”

While Rabobank’s senior analyst Michael Harvey told The Age that rising fuel, fertilizer and chemical prices are just one part of the supply chain crisis, compounded by labor shortages caused by Covid.

“There are definitely elements of what’s going on right now that you’ve seen in the past,” Harvey said.

“But I think it’s fair to say that the number of seismic events happening simultaneously is quite unprecedented”

-Michael Harvey

Get the latest breaking news from SCA newsrooms across Australia. Short, simple and all you need to know.

Back To Top