drought to hit food prices

Drought to hit food prices
Wednesday, 11 October 2006. 06:19

The NFF says the whole economy will feel the effects of the drought. ABC TV

The National Farmers Federation (NFF) is warning food is likely to become more expensive because of the drought.

The NFF says there is likely to be a 45 per cent drop in net farm income this financial year.

The chairman of the NFF's farm business and economics committee, Charles Burke, says falling production will have an impact on consumers.

"If the supply is reduced and the demand remains the same we will probably automatically see price increases," he said.

"That might be across the board for a whole host of commodities issues and I guess products.

"It might also see a reduction in the quality."

Mr Burke says the whole economy will feel the effects of the drought.

"Drought is no longer just confined to farmers," he said.

"It has a significant impact right across the Australian economy.

"The drought in the past has had significant impacts on our gross domestic product."

http://abc.net.au/news/items/200610/1760222.htm?wa