Food Shortages And Grocery Prices Predicted To Rise Again

Another La Nina event will cause more food shortages on Australian shelves, experts predict, with chicken, dairy products, oils and vegetables among those to fall victim.

Workers shortage resulting in having to pay higher overtime to available staff and the ongoing war Russia has inflicted on thr Ukraine also means food producers are being forced to pass on the price hike to its customers.

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Poultry supplier Ingham has announced it will increase the price of its goods - forging a price hike on chicken - usually one of the most afforable proteins.

“We are talking to customers in all our channels, whether that be retail, quick-service restaurants, food service customers, butchers and the like; so we’re having to pass on increased prices right across the market,” Ingham’s CEO Andrew Reeves said.

“Those customers will inevitably pass some of those prices on to consumers, which is already starting to be apparent in the marketplace.”

Dairy giant Bega also confirmed it would lift its prices, and cost of margarine, milk, peanut butter and feta are just some products to see prices risen.

Maragarine is costing up to 51 per cent more than it did this time last year, while milk, peanut butter, and fetal are up more than 14 per cent.

Menawhile, the likelihood of another La Nine event at the end of the year threatens fresh produce.

Fast food chains were among those substituting lettuce with cabbage, and it might be the reality again; perishable foods would be most affected if La Nina caused flooding.

Woolworths said fresh produce shortages will see an increased demand for frozen vegetables. 

“We are seeing some customers trade down from beef into more affordable sources of protein and trade across from fresh vegetables into more affordable frozen and canned offerings,” Woolworths CEO Brad Banducci said on Thursday.

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