Australia: Drought, oil send food prices soaring

IT’S called agflation and it’s coming very soon, propelled by climate change and drought.

Grain prices have hit record levels, and those prices will ramify through the feed chain – beef, dairy, pork, eggs and chicken — and reach consumers.

The nation’s food bowl, the Murray-Darling basin, does not have enough water in the system to keep 150,000ha of citrus, apples, pears, apricots, plums, cherries, table grapes and winegrapes alive, let alone in production.
Fruit production in the basin is worth more than $1.5 billion and accounts for 60 per cent of Australian-grown fruit.

Australian Horticulture Council chief executive Kris Newton says the severe cutback in irrigation water could result in price rises, as seen with bananas after Cyclone Larry.

“But that will be across all the commodities,” Ms Newton said.

“We are facing a disaster unprecedented in Australian history. I can’t think of anything in agriculture that comes even close.”

Dairy prices are skyrocketing, too, although that is little comfort for those farmers having to pay high grain prices.

Australian Dairy Farmers policy director Robert Poole says agriculture is going through its most profound change in modern history.

“The whole oil price, climate change, food for fuel scenario — that has changed the world forever,” Mr Poole said.

The Australian