Food supply and pricing in Western Australia are under pressure due to natural disasters, higher fuel costs, and rising input expenses. Western Australian Food and Agricultural Minister Jackie Jarvis said producers are facing decisions around planting and production as costs increase.
"It's inevitable that food prices are going to go up," she said. "As we go through the season, decisions are going to have to be made about the cost of fuel and fertiliser versus the yield return you're going to get. We want to make sure that people are still planting crops."
Freight costs are also increasing, adding pressure to pricing across the supply chain. "Eighty per cent of our packaged food also comes across the Nullarbor, so we also have issues there," she said. "That's also a concern."
Carnarvon banana production has been affected by Tropical Cyclone Narelle, with around 90 per cent of the crop reported as damaged. Reduced supply has resulted in price increases of around 20 per cent, with a bag of bananas rising from $4 (US$2.66) to $6 (US$3.99).
"Just in the last two months, due to other world events, we've had every single supplier that supplies us advising us of increases in prices," said Doriana Mangili of the Sweeter Banana Co-operative. She added that all stages of the supply chain are experiencing cost increases.
"It's really serious beyond just bananas — there's a big, broader issue out there about food security," she said. "How do we make sure that we have sustainable food prices that people can afford, given the climate of everything else that's going on beyond just our little cyclone?"
Industry participants report that supply contracts have limited short-term price changes, but increases are expected over time as higher costs are passed through the chain. Consumption patterns are also shifting as buyers respond to higher prices and look for lower-cost options.
Market participants expect these trends to continue as fuel costs and overall cost of living remain under pressure.
Source: ABC News
