Rising vegetable prices could be here to stay for a while, with the flood crisis in New South Wales, the latest in a round of success that boosted grocery bills .
Key points:
- The ongoing flood crisis in Sydney is dragging millions of dollars worth of vegetables
- After months of high costs of fuel and fertilizers for producers
- The industry expects consumers to continue to pay high prices for some time, but the recovery is on the horizon
In Camden, on the south-western outskirts of Sydney, vegetable grower Paul Grech said his childhood cabbage and spinach harvest had been “wiped out” by the Nepean River.
It is the third flood to hit his farm this year, with an estimated turnover of $ 1 million.
“You don’t get anything after a flood,” he said.
With the price of inputs such as fertilizers and fuel also very high, Grech said it is likely that consumer food bills will feel the cumulative impact.
“I think it’s been a long time coming. People haven’t paid much for it,” he said.
“People will pay $ 4, $ 5 for a cup of coffee and … don’t think about it, but if lettuce is $ 10 lettuce, it comes out in the news.”
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Tyson Cattle, of the top industry body AusVeg, said producers in Eastern Australia had suffered from prolonged wet weather and that rising costs had to be passed on to consumers.
Paul Grech’s vegetable crops have been flooded for the third time this year. (Supplied)
“We are still starting to see the supply return to the market from Queensland,” he said.
“Obviously, we rely on a lot of Queensland production at this time of year.”
Recovery was underway in some areas, but it was not universal, with some growers still struggling to get into the paddocks while others were able to start replanting.
Mr Cattle says production cost challenges are unlikely to subside any time soon. (Fixed line: Anthony Pancia)
“It will take time for this supply to return to the market, but it is certainly on its way,” Cattle said.
He said producers had reported an increase in costs from 35 to 45 per cent, but retail prices had not held up until the last round of bad weather and supply problems, with growth of only 7 per cent. , 5 percent.
“[Our growers are] in the face of a really challenging environment, ”Cattle said.
“And they have to make sure they are paid fairly and that they remain viable.”
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Posted 7 hours, 7 hours ago, Tuesday, July 5, 2022 at 3:54 AM, updated 5 hours, 5 hours ago, Tuesday, July 5, 2022 at 5:30 AM