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Drought may push up food costs 7 May 2004
Consumers could be paying more for meat, fruit and vegetables as the drought in New South Wales worsens, the State Agriculture Minister says. Ian Macdonald said the proportion of the state now drought-declared has climbed to 70.7 per cent, up from 63.7 per cent in April - a "crisis of major proportions". Consumers as well as the farming community will suffer if there are no rains in May and June, with further price hikes for food.
The Bureau of Meteorology's forecasts indicate that rainfall levels will remain below average. Mildura, in western NSW, recorded its lowest-ever rainfall on record in April.
Mr Macdonald said the economy could suffer economic losses of up to $2 billion from failed crops. Utilities Minister Frank Sartor also said that dam levels across the state have dropped, with 30 to 40 towns at risk of running out of water.
News.com.au, 6/5/04.
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