Australia: Tomato prices could skyrocket in cyclone aftermath

Farmers are currently tallying up the costs amidst the aftermath of cyclone Debbie which barreled through north-east Australia. The cyclone has caused widespread crop damage in Bowen, an important agriculture producer for Australia. Amidst the devastation, experts are predicting shortages and increased prices for affected fruit and vegetable crops, including avocados, tomatoes, cucumbers, beans and others due to the damage.

The Australian Retailers Association executive director Russell Zimmerman said, while it was early days, he expected the impact would be felt by Australian consumers.

"If you get a devastation of that kind ... what happens is prices really work on supply and demand," Mr Zimmerman said.

"I think you're going to see in the coming weeks there will be a shortage and in some cases, not in all, but in some cases retailers may have to look overseas to buy products. Unfortunately prices will rise at the supermarket and that's going to affect everyone across (Australia)."

ABC reporter Lisa Herbert spoke with farmers in north Queensland, with many reporting big damage to crops.

National Farmers' Federation chief executive, Tony Mahar, said the area hit was somewhat of a "food bowl" within the Bowen region, which produces around 95 per cent of Australia's winter supply of tomatoes and capsicums. Bowen is also known to grow eggplant, pumpkin, cucumber, beans, corn and other crops, with recent estimates suggesting that it produces around $450m in agricultural goods each year.

As a result of the damage caused by the cyclone, it is now estimated that prices of tomatoes will soar to $10 per kilogram according to Nick Martelli of Allcrops. Rockmelons, passionfruits, beans and avocado prices are expected to suffer the same fate, National Farmers' Federation chief executive Tony Mahar told us.

“Conservatively, I would say a 50 to 60 per cent increase on current prices,” he explains.

“There will be a shortage. We have no other areas in Australia that can compensate for that little block that Debbie has put on us now."

He said, ahead of the cyclone, there were predictions there would be $1 billion worth of damage "just to crops", but other costs will also hit farmers.

"Damage to roads and other transport infrastructure will be expensive and will also impact on the process of getting produce to market. On-farm damage to sheds, machinery, fences and silos will also be an additional hit for farmers."

source: nowtolove.com.au, abc.net.au, bendigoadvertiser.com.au