Growers warn Victorian potato price set to soar

First it was $12 lettuces, and now the price of the humble spud is set to soar in the latest cost-of-living crunch in Victoria.

Victorian growers are warning that the price of potatoes will soar in coming weeks.

Victorian potato growers are warning that the price of the humble spud could jump by at least 30 per cent in the coming weeks in the latest cost of living crunch.

It means shoppers could be expected to pay up to $12 for a 4kg bag of brushed potatoes in major Victorian supermarkets.

Growers say potato shortages are being caused by soaring fuel prices and production costs.

It comes after the cost of iceberg lettuce surged to $12 in some supermarkets in recent weeks amid ongoing produce shortages.

The price surge even saw some KFC fast food stores subsitute cabbage for lettuce in their burgers.

Potato grower Tony Cummaudo, who manages Cummaudo Farms in South Gippsland, said consumers could pay at least 30 per cent more for potatoes in coming weeks.

“The cost of production has gone up, between fertiliser, wages, machinery – everything has gone up through the roof,” Mr Cummaudo said.

Growers have blamed short supply and rising production costs for the price surge. Picture: Andy Rogers

“The high cost of living is affecting everybody – this has caused a flow-on effect for farmers.”

Clarkes Hill potato farmer Rodney Guthrie said the price of brushed potatoes in recent weeks had skyrocketed up to $12 for a 5kg bag at some supermarkets in regional Victoria.

“It’s usually $5 for a 5kg bag, but electricity and fuel have gone up and fertiliser has gone up by double,” Mr Guthrie said.

“The shortage started after the summer rains, which caused a shortfall in the growth season and the tonnes weren’t there compared to what we normally get.

“The prices are so expensive because we’re short in supply.”

Mr Guthrie said the prices had been “over inflated” for the past three years.

“The cost of potatoes is three times more than what they were last year, we also had to deal with the storms in January that resulted in 90 acres of potatoes being wiped out.” 

Victorian Farmers Federation horticulture vice president Katherine Myers, who runs a potato farm in Tourello, said it was a “very difficult” time for farmers.

“With the costs of input, the difficulty in finding labour and the costs in fuel that have increased, it means most farmers are breaking even this year rather than recovering and making any kind of profits,” Ms Myers said.

Michael Coote, chief executive of AUSVEG, which is the industry body representing Australian growers, said: “The cost of production is increasing but the price return that growers are getting paid for fresh vegetables isn’t mirroring the cost environment that they’re facing.”

National Farmers’ Federation president Fiona Simson said many farmers were feeling the impact of “eye-watering” production costs.

“This includes increases in fertiliser up to 89 per cent on the same time last year and fuel prices jumping to about 50 per cent higher,” Ms Simson said.

“Energy is also a major input cost and prior to this energy crisis, a large dairy farmer would spend $100,000 to $150,000 on electricity annually. This number is edging towards $250,000 for a contract negotiated today,” she said.