Australian farmers are warning the ongoing fuel crisis could push grocery prices up by as much as 20 per cent, with major changes expected around Anzac Day if the situation isn’t resolved.
The crisis is set to force grocers to pass on rising costs to customers, with regional areas running out of fuel and farmers reassessing their operations as costs spike.
WATCH THE VIDEO ABOVE: Fuel crisis threatens 20 per cent grocery price surge
Know the news with the 7NEWS app: Download today
“That’s going to result in significant price change, 10 per cent, 20 per cent or more, depending on what sort of food or fibre it is,” NSW Farmer’s Association Xavier Martin said.
Everyday staples that are moved fresh on a weekly basis are particularly vulnerable, with transportation weight playing a key role in the crisis.
“Fruit and vegetables, you know, they’re pretty heavy in their water volume,” Martin said.
Suppliers are now advising retailers daily of new fuel levies, with chicken suppliers among those adding charges.
“They hit us yesterday with a $7 levy per delivery,” grocer Daniel Flammino said. “Now, I understand it, but we’re eventually going to have to pass on that cost.”
“That’s why it’s so important that urgent steps are taken to secure fuel supply for the food industry,” Master Grocers Association Martin Stirling said.
The situation has attracted international attention, with an Australian dairy farmer interviewed by British television speaking of rationing diesel and showing the strain on the industry.
“It doesn’t matter what country you’re in, it comes from a farmer somewhere within that country. So, to the people out there, start looking out for farmers,” dairy farmer Jim Watts told ITV.
Farmers are warning that without the petrol crisis resolved by Anzac Day, just over 20 days away, plans for new crops will drastically be wound back.
Limiting seeding would be bad news not just for food prices, but also for food quality and nutrition for all Australians.
“That then impacts nutrition for all of us,” Martin said.
