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Bureau doubts fresh food price hike, independent shops struggle
Australia
Friday 29 June 2007
The Australian Bureau of Agriculture and Resource Economics says widespread water shortages does not mean consumers will be facing massive price rises for fresh food.
It says supermarkets should be able to find enough fresh produce from established import markets to fill shortfalls of locally produced fruit, vegetables and dairy.
The Federated Farmers of New Zealand's Charlie Pedersen says there has already been a big increase in export orders from Australian supermarkets and they can send it over as cheaply as we can produce it.
"There is a traditional relationship there anyway, where the supermarket chains do source horticultural goods from New Zealand now," he said.
"There has been an increase because of lack of availability from Australia, so it's a chain that's well established already."
But while the big supermarkets are importing more, independent retailers who do not have that supply option say they will have to put up fresh produce prices.
The cost of vegetables like broccoli have doubled because of higher water costs.
IGA board chairman Fred Harrison says he is worried they could lose market share to the big retailers if customers will not buy other products.
"There are now two or three items that we can't source at all," he said.
"It's virtually impossible to buy green beans and impossible to buy zucchini and when we do get the odd box, the price is more than double.
"We're talking about prices that have never been heard or seen of in all the years we've been selling items like this."
It says supermarkets should be able to find enough fresh produce from established import markets to fill shortfalls of locally produced fruit, vegetables and dairy.
The Federated Farmers of New Zealand's Charlie Pedersen says there has already been a big increase in export orders from Australian supermarkets and they can send it over as cheaply as we can produce it.
"There is a traditional relationship there anyway, where the supermarket chains do source horticultural goods from New Zealand now," he said.
"There has been an increase because of lack of availability from Australia, so it's a chain that's well established already."
But while the big supermarkets are importing more, independent retailers who do not have that supply option say they will have to put up fresh produce prices.
The cost of vegetables like broccoli have doubled because of higher water costs.
IGA board chairman Fred Harrison says he is worried they could lose market share to the big retailers if customers will not buy other products.
"There are now two or three items that we can't source at all," he said.
"It's virtually impossible to buy green beans and impossible to buy zucchini and when we do get the odd box, the price is more than double.
"We're talking about prices that have never been heard or seen of in all the years we've been selling items like this."
