Prices of household essentials such as butter and cheese set predicted to soar amid global shortages

We’re all about to spend a lot more on butter and cheese – and they’re already costing more. Here’s how SA supermarket prices compare.

Rising supermarket prices will continue to put pressure on household budgets, with household essentials predicted to soar amid high production costs and global shortages.

Prices of household dairy essentials such as butter and cheese were predicted to increase according to Victorian Farmers Federation president Emma Germano as the world experiences a global shortage of dairy products.

Floods, droughts, war, land shortages and lack of irrigation water access are pushing up prices for shoppers.

It comes after The Advertiser reported last month the cost of chicken was set to rise, because of huge increases in feed and diesel costs, and the largest rise from the Reserve Bank in 22 years on Tuesday.

Chief executive officer of the South Australian Dairy Farmers Association Andrew Curtis put the dairy price rise down to rising production costs caused by inflation.

Fourth-generation dairy farmer Mick Billing is still recovering financially from the sudden drop in farmgate prices in 2016. Picture: Nicole Cleary,

“Inflation has raised the power prices. We use a lot of electricity in the dairy industry – at every stage of production, we need to use refrigeration,” Mr Curtis said.

“The cost of fertiliser has increased because of the war in Ukraine.”

Not only have the floods in Queensland and NSW and the lack of irrigation access in northern Victoria affected Australia dairy supplies but the rise of the meat industry is pushing the dairy industry out of the primary product market, according to Mr Curtis.

Land usually used by dairy farmers is being out-bid by meat farmers, leaving no space for production.

Mr Curtis said farmers were giving up because it was too hard to compete.

Drought in the United States and the war in Ukraine were also contributing to an international shortage of dairy products, Mr Curtis said.

While “it’s been a challenging time” Mr Curtis said dairy producers were “cautiously optimistic” for the future.

“We ask people to buy SA products – we really appreciate it, it helps everyone,” he said.

In response to the increase in prices, a Coles spokesperson said a number of factors were “driving inflation for all retailers” and “increases in the cost of raw materials, energy price rises and freight costs” were all contributors.

A Woolworths spokesperson said they knew customers were looking for value “now more than ever”.

Originally published as Prices of household essentials such as butter and cheese set predicted to soar amid global shortages