Farmers for Climate Action report shows reason behind grocery price hike

Skyrocketing grocery prices and empty supermarket shelves could become the new norm for Australians, according to a new report.

The analysis, by Farmers for Climate Action, detailed how extreme weather events like bushfires and the ongoing NSW floods could heighten food shortages.

Conducted by expert in food resilience and governance Stephen Bartos, the report found Aussies are already paying more for groceries due to climate change’s impact.

“Australians take it for granted that food will always be available. Climate change disrupts this,” he said.

“It creates and amplifies risks all the way through the supply chain, from farm to warehouse to supermarket shelves.”

Mr Bartos said such food shortages would trigger a knock-on effect that would increase both supermarket product prices along with insurance and lending.

He explained that on top of what’s to come, many farmers have already had to completely change their business model to keep up with altering climate conditions.

“Some farmers have already had to sell and shift to areas with more reliable rainfall which raises the issue of stranded assets, as packing houses and processors set up in specific regions where specific produce is currently grown such as dairy processing factories,” Mr Bartos said.

Farmers for Climate Action chief executive Fiona Davis said the report showed just how much extreme weather events were already impacting food chain supply.

“More lost food, less grass for farmers’ livestock to eat, less water and less days to transport livestock – which cannot be transported in extreme heat – mean consumers pay more for food,” she said.

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Supermarket prices are set to be impacted by climate change. xjmtzywNCA NewsWire / Daniel Pockett Credit: News Corp Australia

“It also means we’re increasing the risk of food shortages in Australia. Getting produce off farm and into supermarkets, and ultimately Aussie homes becomes difficult or impossible to deliver when multiple events coincide. We saw this earlier this year in northern and Central Australia early this year when record floods cut off roads and rail links during the Covid pandemic.”

The report also noted that the country’s food chain supply rests heavily on by how much the earth will warm by, with anything more than 2C being “catastrophic”.

“Even if the Paris targets are met adaptation in the Australian food supply chain will be

challenging,” the report said.

“Current global warming, 1.07C above pre-industrial levels, is already having negative impacts on food supply.

“A 2°C average warmer global climate will put the food supply chain

under acute stress. If global warming exceeds the 2C target, adaptation will be less feasible, with catastrophic consequences for Australia.”