Floodwaters have hit farms and businesses across Victoria, leading agriculture analysts to predict price increases for dairy products, grain and fruit and vegetables.
Crops and livestock have been affected in key farming areas, from Shepparton to the Victoria/NSW border, and right across the Goulburn Valley, where a significant amount of peaches, tomatoes, pears and apples are grown.
“The impact is devastating for the communities but it is going to be felt on the supermarket shelf around Australia,” John Kehoe, Australian Financial Review economics editor, has told Today.
“Agriculture analysts at Rabobank say this is likely to push up the prices of things like milk, dairy products, fruit and veg and grain.”
Rabobank senior food and agriculture analyst Michael Harvey has told the AFR the floods could mean inflation continues for longer than it otherwise would have.
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“We’ve got decade-high food inflation and we were of the view this hadn’t peaked even before the most recent floods,” he said
“Clearly these floods increase the risk we will have higher inflation for longer.”
The flood crisis is continuing on Monday, with rising rivers threatening thousands of homes, forcing more evacuations and leaving communities without power.
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