Farm inputs have remained elevated for the start of 2023 compared to pre-Covid levels. While they are still far above pre-Covid levels, some input prices have moderated from their peak last year. Over the December 2022 Quarter there were significant price rises for many food and grocery products, largely due to of strong demand over Christmas and elevated input costs.
Fruits and vegetables had their most significant quarterly fall since 2012, although prices are still elevated compared to 12 months ago. This fall can be attributed to the high prices of fruits and vegetables in the September 2022 Quarter following intense flooding events along the East Coast during the year.
Due to the relentless flooding and severe weather events, summer plantings have been reduced, putting pressure on vegetable prices for the start of 2023.
Figure 1. Grocery products, Australia, quarterly and annual movement (% change in price) (ABS).
Major supermarket pricing for vegetables
As indicated in the first graph below, (Australia – All Vegetables), there is a noticeable decrease in the total volume of vegetables from 2021 to 2022. This is highlighted more clearly in the second figure, which shows the average drop in volume of all vegetables, largely due to the extreme weather, labor shortages, and inputs pricing.
Source: ausveg.com.au