Food Prices to Rise Sharply.

Will Food Prices Rise Sharply?

Farmers are warning that prices for their produce will rise further following their increased wage costs.

An example of why these increased costs will have large effect is this quote from an Apple farmer.
“When it comes to growing an apple, 50% of the cost is labour, whereas electricity represents 1.5 per cent.”

Victorian Farmers Federation president Emma Germano warned producers would have no choice but to pass on the increase.
We’ve got people at the same time saying how come iceberg lettuce is at $12 a head? Well, it will end up at $13 a head if this sort of blunt instrument is used to put up wages.”

Some businesses are considering closing. That could reduce supply and consequently increase prices even further.

Regarding the price of lettuce, which has risen sharply since the floods, those prices should reduce again once the effect of the floods has diminished.

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