Australia is experiencing its worst drought in more than 110 years. How serious and terrible the drought was, there was a lot of talk in the news. Friends living in the city may not feel the direct effects of drought. However, should soon be able to feel it, because drought is bound to lead to rising prices!
(the Daily Mail: Australia has a severe drought, or the price of vegetables and fruits has skyrocketed!)
(< The Sunday Telegraph >: new state drought: researchers warn, or usher in a new round of price rises!)
There is a treasure land in the west of Brisbane, Australia, called Lockyer Valley, Australia's salad bowl, which we commonly call the "vegetable basket".
All have this title, because here is rich in a variety of vegetables and fruits.
LockyerValley soil fertility, world-famous, annual export value of vegetables and fruits as high as 370 million.
However, the basket may be running out of water.
In 2013, there was a flood in the basket area. But since then, there has been no decent rain in the area.
Since May this year, the region has more directly started the "drought" state.
Michael Sippel, chairman of LockyerValley Growers Association, said: "while groundwater can keep the region going until next year, if the current drought continues, it will definitely reduce production. When supply begins to decrease, prices start to rise. You may not feel it by 01:45, but you will by the end of this winter. "
John Quiggin, an expert on food prices and extreme weather at the University of Queensland, said: "according to previous experience, drought can lead to a 33 percent increase in vegetable prices and a 43 percent rise in fruit prices. Prices of locally produced fruits and vegetables can easily rise during the drought, and if farmers can't adjust to extreme weather changes, then prices may not fall after they go up. "
Many farmers are dependent on groundwater because the water level in the vegetable basket area is falling.
Local Koala Farms farmer Anthony Staatz said: "if the water level does not rise in the next few months, they may reduce production and safety." The season is coming to an end, so it should end well. But if next winter is still so dry, we will grow less crops. "
This is true of vegetables and fruits as well as of meat (mainly beef and lamb).
Richard Heath, the boss of Australian Farm Institute, an agricultural research firm, said: "according to past experience, drought could lead to a sharp increase in the price of grocery bills (groceries, which could be twice the rate of inflation. If you look at the drought between 2002 and 2003, food prices are up 4.5 percent, but inflation is just 2.7 percent. "
However, during the drought, beef and mutton prices will have a ups and downs. At the beginning of the drought, farmers may sell cattle and sheep at a low price because they can't afford to feed them, so the price of beef and mutton will fall at this stage. However, once the drought is over, farmers may raise the price of cattle and sheep. The first is to make up for the loss before.
Again, the cost of raising cattle and sheep by farmers has naturally increased as a result of drought, which has reduced grain production and led to higher animal feed prices. Costs will naturally be passed on to consumers.
So, while the price of vegetables, fruits and meat has not yet increased, everyone hurry to eat more time! When the price rises later, eating meat and eating vegetables may hurt meat.