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Food prices expected to remain high
19 Oct 2007
Plummeting food production levels mean that households can expect no relief from higher grocery prices even if the drought breaks. National grain stocks fell by 70 per cent between January and August according to industry analyst Profarmer. The Murray-Darling area produces around 60 per cent of our fruit and vegetables but the area has been crippled by drought while grape production in South Australia alone is down by 34 per cent this year. Analysts estimate that the national household grocery bill rose by 3.8 per cent in the third quarter of this year with fruit and vegetables up by 18 per cent. Constrained supplies of food globally are likely to see food prices rise by 5 per cent this year and not retreat from this level.
Financial Review, 19/10/2007
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