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Warning of more food price hikes

Australia's food industry bodies are warning of further food price hikes due to supply chain issues, and are urgently calling for a national food security plan.

Australia's food industry bodies are warning of further food price hikes due to supply chain issues, and are urgently calling for a national food security plan. Photo: TND

Australians are being warned the price of food is set to rise again amid calls for a national food security plan.

The national food supply chain alliance says long-term supply chain issues, caused by ongoing natural disasters and labour shortages, will lead to further price increases in the next 12 months.

The group is made of representatives from the red meat, vegetable and seafood industries, farming federation, food distributors, restaurants, grocers, convenience stores and transport.

The alliance’s Richard Forbes says consumers can expect to see food prices rise by a further seven per cent in the next 12 months, if supply chain issues aren’t dealt with.

“A national food security plan will bring all the pieces of the puzzle together,” he told AAP.

He said the plan would include a national food map identifying where crop shortages would be in the event of natural disasters, as well an audit of the national supply chain.

The alliance said recent threats including natural disasters cutting transport routes, have highlighted Australia’s food supply chain’s deficiencies.

“Once infrastructure is disrupted, food prices go up,” Mr Forbes said.

And he warned Australian consumers will pay more if a plan is not introduced.

“We will try and make a shorter more efficient supply chain. We will look at all the issues that are disrupting the supply chain and we can then develop strategies to try and prepare better, and at the moment we are unprepared.”

The head of the Australian Association of Convenience Stores Theo Foukkare said families are already feeling the squeeze.

And he told AAP an urgent plan is needed.

“Where we’ll really see it coming into effect is when we have the next natural disaster or the next pandemic,” he said.

The alliance has called for a working group to be set up and to include all food supply chain stakeholders, to devise a national food security plan.

A response has been sought from the federal agriculture minister.

– AAP

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