The prices of fresh food and meat in Australia are expected to rise exponentially in the wake of the bushfire crisis.
It is anticipated that vegetable prices could rise by up to 50% as the fires have destroyed crops and shut down several highways, severely disrupting all levels of the supply chain. James Whiteside, the chief executive of the vegetable industry’s governing body, AUSVEG, said that the added travel time to reach suppliers and supermarkets adds “significantly” to prices.
Whiteside called on supermarkets to “try, wherever possible, to shield consumers from higher costs”, but also warned consumers to be “prepared to pay a slightly higher price because many growers are going through a pretty tough time at the moment”.
The problem is sure to be exacerbated by rising fuel costs. For instance, there was a 26% increase in unleaded petrol prices in Sydney over the last week, with forecasts predicting a continued increase over the next few days. This has been attributed to both the increased cost and duration of transportation, and the destabilizing effects of the Iran-US conflict on oil-producing Gulf countries.
Furthermore, the hot and dry conditions have provided little respite for those farmers who are able to grow their produce, as the weather conditions are highly unfavorable for growth.
Farmers whose properties have been affected by the bushfires are entitled to A$75,000 to repair their properties. Prime Minister Scott Morrison has also promised at least A$100 million to rebuild the nation’s primary production farmland. This will be supplemented with $15 million for 60 rural financial counselors.
Agriculture Minister Bridget McKenzie estimates that at least 19,000 farmers, foresters, and fishers have been severely impacted by the bushfires, and told consumers to accept paying more for red meat, fruit, vegetables, and milk.
Image Source: Reuters