Australian food prices to soar on drought forecast
Pastor Dale Morgan
Australian food prices to soar on drought forecast*
By Nick Ralston
September 13, 2007 12:01pm
THE price of basic foods could rise shortly as the drought threatens New
South Wales winter crops, with bread possibly rising "20 per cent a
loaf," the state's Primary Industries Minister Ian Macdonald says.
Figures released today show 71 per cent of NSW is still in the grip of
drought, down from 75.8 per cent last month.
While this is a slight decrease, Mr Macdonald said the area still
affected by drought was primarily the crop belt, putting the state at
“crisis point''.
”We believe that if we don't get rain within the next week to two weeks
we will have substantial crop failure in NSW,'' he said today.
”A crop failure of this magnitude would have a huge impact on the prices
of basic foodstuffs right across the state and rolling into Christmas.''
Mr Macdonald said the increases in the prices of foods that relied on
grain could be between 15 and 20 per cent.
This could potentially see the price of bread increase by about 20 per
cent a loaf, he said.
No rain within a fortnight would spell disaster for NSW farmers who,
following decent rainfall in June and July, optimistically planted their
largest winter crop since the last drought broke in 1983.
Following five years of drought, some farmers had diversified what they
produced while others had found jobs away from the farm, including in
mining.
”For farms where they can't do that, they will be suffering,'' Mr
Macdonald said.
The NSW government this month extended its transport subsidy scheme
until the end of November at a cost of $12.1 million.