By Daryl Passmore April 27, 2008 01:48am Article from: Font size: + - Send this article: Print Email CASH-STRAPPED families face further pain at the supermarket checkout, with experts warning of price rises up to 50 per cent on food staples before the end of the year as a world food shortage hits home.
Fruit and vegetables are expected to be the worst hit, while bread, milk, cheese and meat will be close behind.
The grim outlook comes as Australian Bureau of Statistics figures last week showed rising food prices had pushed inflation to 4.2 per cent for the year to March - its highest level in 16 years.
Economists and producer groups say there is no relief in sight.
Australian shoppers are about to be swept up in a "perfect storm" of global food shortages, escalating demand from countries such as China and India, rising fuel, fertiliser and pesticide costs and the effects of drought and other climatic impacts.
UN advisers have called it "the worst crisis of its kind in more than 30 years".
While local produce experts say there won't be a food shortage in Australia because we grow most of our food, they warn that consumers will not be immune from huge food price rises.
"We will see huge increases in fruit and vegetable prices over the next year," said John Cherry, chief executive officer of Queensland Federated Farmers, a consortium of 13 rural organisations representing 13,000 primary producers across the state.
Wheat prices rose 130 per cent over the past year to an all-time high and with global demand still outstripping supply, they are set to keep rising.
That will push up the cost of bread and breakfast cereals and - because grain is used to feed livestock - beef, lamb, chicken and egg prices will also continue to climb quickly.
On top of that, soaring fuel and energy prices will push up the cost of food production, transport and distribution.
Hardest-hit would be low-income earners, who could be spending 30 per cent to 35 per cent of their money on food - on top of massive increases in housing and petrol prices.
Jan Davis, chief executive officer of Growcom which represents the horticulture industry in Queensland, said growers were increasingly concerned about the lack of discussion by the Government and community on Australia's long-term food security.
While Australia was pretty well self-sufficient at present, a trend towards more imports of cheaper food by supermarket chains, rising fuel and production costs, and the impact of the drought could jeopardise that.
"There was a report done a couple of years ago that indicated that on current terms of trade, there would not be one (fruit and vegetable) producer left in Australia who would be sustainable in 11 1/2 years' time," Ms Davis said.
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