Agricultural analysts warn that prices for groceries are expected to soar and vegetables, bread and even margarine could become extraordinarily expensive, as the worst drought in the state in more than 110 years has led to growing crop losses.
The price of red meat may not rise for the time being.
According to the Daily Telegraph, only red meat should remain unchanged for the time being-because farmers are unable to feed cattle and sheep instead of selling them, the price of red meat may fall in the short term. However, when the situation finally worsens to the extent of drought, the price of red meat will also jump.
Heath (Richard Heath), executive director of (Australian Farm Institute), an agricultural research firm, said the drought, which historically meant the price of groceries would double as much as inflation, is expected to be no exception.
"in terms of groceries as a whole, if you look at the 2002-2003 drought, food prices are up 4.5 percent, while inflation is just 2.7 percent," he said. During the drought between 2005 and 2007, food prices rose 12%, twice as much as inflation. "during the drought, red meat prices will be lower because farmers are forced to sell live animals, but when the drought breaks out, prices will rise significantly as farmers try to hoard livestock."
However, Heath noted that despite the driest weather on record in most of the new state's rural areas over the past 14 months, the rise in fresh food costs has yet to reach consumers because most of the fresh food is produced through irrigation.
The driest weather in 30 years began at the start of the year, but supermarket chain Woolworths claimed that every supply farm in the new state was completely immune to the drought.
Organic vegetable grower Humory (Brendan Murray) of Cowlimbali (Coleambally), New York, has close business with Woolworths. He cut his vegetable crop by 80% this year because the soil was dry.
Murray's farm covers 112 hectares. Murray grew 30 hectares of broccoli, cabbage and carrots last year and is now harvesting 6 hectares this year. He recently planted another six hectares of onions, down from 20 hectares last year, and is likely to cut Italian cucumber production next month.