Australians going hungry due to rising energy prices and Labor’s IR agenda, food groups warn Anthony Albanese

The food sector has united to accuse Labor of failing to act on rising prices, warning that customers are paying more at shopping centres and restaurants because of high energy prices, the PM’s workplace relations agenda and a lack of ­productivity-enhancing reforms.

Anthony Albanese pauses during a cabinet meeting at Parliament House on Monday. Picture: AAP

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The food sector has united to ­accuse the Albanese government of failing to act on rising prices ­despite a growing number of working Australians going hungry, warning that customers are paying more at shopping centres and restaurants because of high energy prices, Labor’s workplace relations agenda and a lack of ­productivity-enhancing reforms.

On the same day industry ­bodies across the food supply chain told The Australian they would demand a pre-election commitment to create a food-­security strategy, the Albanese government revealed it would take such a pledge to the election.

But industry leaders are urging the government to go further and address cost-of-business pressures to help put downward pressure on prices.

With industry leaders saying the issue has been urgent for two years but has fallen on deaf ears in the Albanese government, ­Agriculture Minister Julie Collins will on Tuesday unveil $3.5m of funding to create a “Feeding Australia” plan to “boost the security and supply-chain resilience of agriculture and food production systems in Australia”.

The plan will include the creation of a National Food Council, with industry experts to advise the government of the implementation of the strategy designed to prevent food shortages seen during major supply chain disruptions such as the Covid-19 pandemic.

Australians are paying more at shopping centres and restaurants because of high energy prices, Labor’s workplace relations agenda and a lack of productivity-enhancing reforms, food groups say. Picture: NewsWire/ Gaye Gerard

The government announcement comes as industry bodies prepare to campaign on food ­security at the coming election, with the push backed by the ­National Farmers Federation, the Australian Retailers Association, AUSVEG, the Australian Food and Grocery Council, ­Foodbank, the Refrigerated Warehouse and Transport Association and Independent Food Distributors ­Australia.

The industry groups say the soaring cost of doing business has contributed to higher food prices and urged Labor and the Coalition to go to the election with plans to rectify the issue. IFDA chief executive Richard Forbes said ­action was needed to avoid high food price inflation becoming a structural feature in the economy, as warned by Rabobank senior analyst Michael Harvey.

After former RBA governor Philip Lowe declared in The Australian on Monday that low productivity was having a bigger impact on living standards than ­the previous run of interest rate ­increases, Mr Forbes said “one way to boost productivity is to reduce the cost on businesses”.

“The government has some control on those costs,” Mr Forbes said. “Everything from fixing ­labour shortages to having the right energy policy, getting rid of this very complex and inefficient regulatory system across borders when you transport freight, incentivising manufacturing.”

Mr Forbes – whose members have complained about energy prices rising by more than 50 per cent – said more consultation with the food sector on how to alleviate business costs would have limited food-price increases.

Brianna Casey, Foodbank chief executive.

Brianna Casey, chief executive of Foodbank – a charity in overdrive supplying food to one million Australians a month – said food-relief organisations were also struggling with increased costs of doing business. “We are experiencing a quite significant surge in the cost of sourcing food, certainly huge ­increases in the cost of transporting logistics associated with ­moving food relief around the country,” Ms Casey said. “So our overheads, our power, our labour costs (are) escalating at a time when demand for food relief is also escalating.”

Ms Casey said she had never seen anything like the current demand for the charity in her nine years at Foodbank, with households earning more than $95,000 a year facing food insecurity.

She said the government ­needed to acknowledge Australia had a “hunger problem”.

“The reality right now is that 57 per cent of the households that we are providing food relief to have at least one person in full-time employment,” she said. “In fact, in many circumstances, we’re talking about multiple job holdings. So we’re talking about families who are working, both parents working throughout the day … and then at least one of those adults is heading out in the evening into the gig economy to take on additional employment just to keep up with those household costs that previously would have been covered by one or even two people being employed.”

AUSVEG chief executive Michael Coote said a third of vegetable growers were considering leaving the industry in the next year. “The prolonged cost-of-­production crisis facing vegetable growers is still one of the top ­reasons so many are thinking about walking – along with an overwhelming compliance burden and unviable returns,” Mr Coote said. “Australian growers produce 98 per cent of the fresh vegetables bought and consumed in this country – so if anywhere near one-third leave there will be a major impact on vegetable supply, and consumer prices.”

NFF president David Jochinke said the agricultural sector’s productivity was being hit by high ­energy prices and onerous workplace relations regulations.

“We feel like our industry is being stifled or drowned out by the burden of legislation and the amount of requirements that it takes us to run our business in the current era,” Mr Jochinke said.

“Even things like environmental laws are actually placing more burden, more onerous compliance of farmers, but not actually changing or enhancing how we operate. And we see there are also industrial relations (issues) as well. Small business has more compliance, but actually it’s not benefiting the farmer or the employer with any more safety.”

Fleur Brown, chief industry affairs officer at the ARA – the body that represents food retailers ­including Coles and Woolworths – said federal leadership was needed to lower food costs.

“This includes federal leadership incentivising states and ­territories to simplify complex, ­inefficient regulations that vary across states and cost businesses, providing targeted solutions for food businesses, such as support with energy relief, and by investing in resilient supply chain infrastructure,” she said.

RWTA chief executive Marianne Kintzel said an overhaul of energy policies was needed to drive down food prices. “Australia’s cold-chain industry is significantly impacted by rising energy costs, including increased tariffs and substantial renewable energy levies,” she said. “The additional financial burdens are inevitably passed down to consumers, escalating food inflation.”

A spokesman for AFGC, which represents food manufacturers, said a new focus was needed on addressing the cost of doing business and boosting productivity.

As part of the government’s plan, it will also examine the potential to increase the production of low-carbon feedstock to help bring down greenhouse gas emissions in the sector.

“When our food and supply chains are secure, it reduces financial strain on households, helping all Australians,” Ms Collins said.