Aussie shoppers warned festive staples face pre-holiday price hikes
- 12 minutes ago
- 2 min read
Australian households are being urged to plan their Christmas budgets, with global food costs expected to push up prices for many festive favourites.
Rabobank says a combination of international conflicts, extreme weather and rising farming costs is putting pressure on global food markets.
Basic ingredients such as sugar and flour are among those facing stronger price pressures. This could make bread, baked goods, sauces, snacks and other processed foods more expensive.
Christmas favourites including ham, beef and lamb, as well as cooking oils, Asian sauces and soybean-based products, could also see price increases.
Global wheat prices rose sharply in August, reaching three-year highs amid export disruptions, higher energy costs and weaker European corn production. Sugar and soybean prices have also increased by around 20%.
Australian meat prices remain under pressure as farmers face higher costs for grain, feed, fuel, fertiliser, transport and refrigeration. Strong overseas demand for Australian beef and lamb is adding further pressure.
International conflicts are also disrupting supplies of fuel, fertiliser and grain. Low water levels on major European rivers are creating additional transport problems and increasing shipping costs.
Extreme weather is adding to the pressure. Poor crop conditions in the United States and lower corn yields in Europe are tightening global supplies, while concerns about a strong El Niño could create further risks for crops such as sugar and coffee.
Although Australia produces large quantities of wheat and other grains, local farmers still depend on imported fuel, fertiliser and machinery. Higher global costs can therefore flow through to Australian producers, manufacturers and supermarkets.
With Christmas approaching, shoppers could face higher prices for bread, pasta, cereals, baked goods, cooking products and traditional Christmas meats.
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Source : 9 News
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