The Australian Food and Grocery Council (AFGC) has again called upon the Australian Government to take action to help Australian food manufacturers cope with “immense pressures” on their business. The AFGC’s call coincides with last Friday’s closure of Heinz Australia’s tomato sauce factory in Girgarre, Victoria. Despite the Girgarre closing, Heinz Australia continues to manufacture in the Goulburn Valley region through its baby food factory in Echuca. AFGC Chief Executive Kate Carnell... ...Read more »

The National Australia Bank (NAB) in its latest Rural Commodities Outlook  wrap  issued on 22 December 2011 has reported that apart from the weakening global economy, there is also a very strong production response hitting world agricultural commodity markets. Australian rural production  is on track for  massive winter crops in 2012 because of good rains adding to downward pressure on prices.  At  the same time, sugar and cotton production growth in Australia have also been part of the general... ...Read more »

The United Nations has called for action to ensure long-term global food security as a new report shows that high food prices are likely to continue over the next decade. ‘The State of Food Insecurity in the World 2011’ report states that small, import-dependent countries, particularly in Africa, are especially vulnerable to poverty and food insecurity. “Even if the Millenium Development Goal were achieved by 2015, some 600 million people in developing countries would still be undernourished.... ...Read more »

Projections of how carbon tax will affect commodity prices have been released through the Australian Government Treasury office. In contrast to goods such as electricity and gas, food prices are estimated to increase minimally. According to the Treasury’s new carbon price model, the majority of food product prices will rise. According to the Treasury’s carbon pricing report, the impact of carbon tax on the price milk is estimated to be the equivalent of a 1 cent price rise. Fruit, vegetables,... ...Read more »

The latest World Bank food price report issued on 15 August 2011 has chartered a 33 percent rise in the real cost of food from July 2010 to July 2011, as food security becomes an increasing global concern. Dr Barthwal-Datta, a Postdoctoral Research Fellow who leads Sydney University’s Food Security Research Program says, “Communities in conflict have less access to food because their agricultural lands are being destroyed and their infrastructure is being destroyed. Marginalised and poor... ...Read more »

A major international report has predicted that average food commodity prices will be much higher this decade than the last. The Organisation for Economic Cooperation & Development (OECD) and the Food & Agriculture Organisation (FAO) have projected maize costs will be almost 20% higher this decade on average, and rice more than 15% higher. It also predicts that butter prices will soar worldwide and stay high, rising more than 45%, with poultry prices increasing 30% to 35%. Wheat prices are... ...Read more »

World food prices have climbed to their highest level for over two years, the UN’s Food and Agriculture Organisation (FAO) has said. The FAO said commodity price pressures show little sign of abating and food prices overall have undergone a surge. In the FAO’s latest Food Outlook Global Market Analysis, the organisation’s index of food prices is at its highest level since July 2008 and only eight points off the record high noted in June 2008. The index, which measures average monthly... ...Read more »

New Zealand dairy giant Fonterra has reported a fall in milk-powder prices in its latest internet auction as concerns over supplies started to ease. The price of skim milk powder fell 11.8%, while the price of whole milk powder dropped 14.8% in the latest globalDairyTrade auction. The price of anhydrous milk fat fell 14.1%. Paul Grave, globalDairyTrade manager, said the results reflected an increase in global supplies in response to “a very strong price signal” over recent months. Concerns... ...Read more »

Major challenges facing the Australian meat industry in the short term include the high Australian dollar and increased competition in Australia’s major markets in Asia, according to Paul Morris, Deputy Executive Director of ABARE. Addressing delegates at the ABARE Outlook conference in Canberra, Mr Morris said over the medium term, rising incomes and population growth will increase demand for meat within our region and Australia is well placed to supply these growing markets. “Lamb prices... ...Read more »

Coca-Cola Amatil has hiked the price of their soft drinks by five per cent in an endeavour to protect margins in the face of soaring costs of key inputs like sugar, according to the Australian Financial Review. Australia’s largest soft drink maker is dealing with steady price increases of some of their key resource costs, including sugar and aluminium. The sugar price reached a 29-year high at the beginning of the month but has since retreated a little as markets become more volatile. And CCA... ...Read more »