Why fruit and vegie prices are set to stay high – and keep rising

Fussy eaters might be happy that broccoli and other greens could be in short supply, but many shoppers will struggle to find their favourite fruit and vegies on supermarket shelves.

Fruit and vegie prices are set to remain stubbornly high and some staples even risk going missing from supermarket shelves as floods and worker shortages take their toll, a new report will warn.

The hit comes despite an $80bn bumper year ahead for Australian agriculture being predicted.

Nuts and vegetables prices are expected to rise in the coming year, the ABARES agriculture report will reveal on Tuesday.

A lack of backpacker workers is creating pressure on fruit and vegetable prices. Picture: Robert Pozo

Backpacker workers and other fruitpickers have never recovered from the Covid-19 border shutdowns, a situation that is expected to have a flow-on effect to prices on supermarket shelves.

“If these shortages are not resolved, there is a risk that production may not be able to efficiently service demand, which could result in domestic prices remaining high,” the report stated.

The report will warn the third coming of La Nina weather conditions, combined with already filled dams, could see more fruit and vegetable shortages coming.

“There is a chance of more localised flooding events later in the year which could again cause significant disruptions to the production and distribution of vegetables and fruits,” the report said.

The price of broccoli, lettuce, beans and other goods spiked on the back of floods in South East Queensland and northern NSW, which “severely impacted the supply of fresh vegetables”.

The price of broccoli, lettuce and beans spiked after floods in South East Queensland and northern NSW.

“This significantly impacted on production volumes and produce quality, resulting in supply shortages across the nation for some varieties of vegetables and fruits”, it said of the floods.

The Lockyer Valley, which is known for its broccoli, pumpkin and cauliflower, among other produce, was particularly affected.

High fuel and fertiliser prices are also hitting the costs and the supply chain.

Derek Hutchinson, manager at Charlie’s Fruit Market in Everton Park, said he would be keen to see international workers return to fruit-picking.

“I think that anything that gets the fruit picked and it doesn’t sit rotten on the trees then we should be doing it,” he said.

ABARES executive director Dr Jared Greenville said the agriculture industry was now valued at $81.8bn, down slightly from a record high last year, but there were still issues ahead for farmers.

“Favourable seasonal conditions are expected to persist, but global inflation and rising costs of farm inputs could cloud outlook for demand and farm incomes,” he said.