Food prices set to rise after tough spring in NZ and Aust

Tough weather conditions on both sides of the Tasman are expected to force up the price of food, industry sources say.

The prices of summer fruit and vegetables grown in New Zealand are likely to be at a premium after a cold, wet spring. The Fruit and Vegetable Federation has already reported a reduced yield.

Drought in Australia has severely damaged wheat crops, prompting suppliers there to warn of price rises for bread and processed food in New Zealand bakeries and supermarkets.

New Zealand Baking Society president Peter Gray said bakers had already faced two price increases for Australian flour.

Mr Gray told National Radio that consumers could expect price hikes of about 10 cents for a loaf of bread and up to 20 cents for the traditional meat pie.

Combined Trade Union economist Peter Conway said today low income families spent a higher proportion of their wage on food.

The expected price rises would see hit them hardest, he told National Radio today.

Feed manufacturers have also warned that the cost of chicken and pork might also rise because farmers are paying more for grains used in stock feed.

Meanwhile, New Zealand's graingrowers have already been told they can expect to pocket extra cash because of the drought in eastern Australia.

"There is little doubt that New Zealand spot market grain prices will reflect poor Australian yields," Grains Council chairman Hugh Ritchie said last month.

- NZPA