Flooding along the Murray River and a wet, cold spring have reduced vegetable crop yields and delayed harvests, contributing to food prices growing at their fastest annual pace during the September quarter in 16 years.
According to the national commodity forecaster ABARES, prices for fruit and vegetables are set to keep rising until they peak in mid-December.
Onions prices have probably risen 200 per cent in the past month.
A Melbourne fresh produce wholesaler says prices are already rising quickly after a cold and wet Victorian spring.
"We're seeing with our onions, red onions, capsicums, eggplants, and watermelon, because it is grown in Mildura at this time of year, the prices are rising." Reports www.abc.net.au
However, as local prices rose, imports had become more competitive.
"We are starting to see a lot of Californian onions coming though, red onions, and we're actually seeing them come from Holland as well, so these countries come in and fill gaps until we start to see more of our local produce come online."