#The humble pie store drivers#

вЂњConsumers need to understand prices wonвЂ™t go back to the way they were. Pandemic-related costs are still in the food system.вЂќ So how long will it last?Д¬onsumers should brace themselves, Cattle said. вЂњEven the lockdown in China is having an impact on the global supply chain. The war in Ukraine impacts the cost of energy, fertiliser, grains and oilseeds. вЂњWhen you look at global events, these are short to medium-term impacts. The war in Ukraine and lockdowns in China are all creating a price hike for farmers. вЂњThatвЂ™s where the global events have an impact on pricing.вЂќ вЂњWhen you zoom out, there is pressure across the food system from the farm gate to manufacturing,вЂќ Harvey said. Fertiliser, for instance, is up 120% from 24 months ago. ItвЂ™s not just domestic issues вЂ“ prices are also connected to global events. You canвЂ™t pick anything in Vic at the moment because itвЂ™s 3 degrees outside.вЂќ

вЂњIn Victoria and NSW, we rely heavily on Queensland supply, itвЂ™s warmer up there. Sign up to receive an email with the top stories from Guardian Australia every morning YouвЂ™ve got a heavier growing region at a really critical time and theyвЂ™re hammered by rain events and floods. вЂњThatвЂ™s why we talk region-specific, rather than commodity-specific. You could throw a dart at a board and chances are it will hit one grown there.ДЄt this time of year, the rest of the country eats vegetables coming from there, he said. вЂњLockyer is a significant growing region for all fresh vegetables. ThatвЂ™s leading to a sharp price increase, particularly for fresh vegetables,вЂќ Cattle said. вЂњThe Lockyer valley has been heavily hit by recent weather events. He said the damage in the Lockyer valley had a particularly big impact. Tyson Cattle, a spokesperson for AusVeg, said the recent floods which ruined crops in northern NSW and Queensland are a major factor.

#The humble pie store drivers#

There are multiple issues causing the price hike but the main drivers are floods, war and the pandemic. вЂњWhen you look under the hood it is broad-based: vegetables, beef, meat and dairy вЂ“ seafood, but vegetables are significant.вЂќ WhatвЂ™s causing the increase? вЂњThey hadnвЂ™t been that high since 2011, when there was a cyclone that had a huge impact on bananas.вЂќ вЂњClearly the numbers are the highest theyвЂ™ve been in 10 years when you measure it quarterly,вЂќ he said. Michael Harvey, a senior analyst at Rabobank, said Australians had seen the highest price growth in 10 years. In Sydney, a recent photo of capsicums at Harris Farm retailing for $18.99 a kilo went viral in Melbourne, a Kent pumpkin will set you back $15.60, while a watermelon вЂ“ out of season though from Australia вЂ“ costs $25.52.ДЄlmost everything is going up, from truss tomatoes to zucchinis. Back in 2018, broccoli was $3.90 a kg, but is now $9.90.