Queensland Flood Crisis Makes Christmas Lunch More Expensive for Australians

Customers line up to order seafood at Sydney Fish Market in Sydney, Australia, on Dec. 24, 2022. Jenny Evans/Getty Images

Millions of Australians planning to have a festive Christmas lunch will be hit hard on the wallet as the Queensland flood crisis pushes up the prices of vegetables, fruit, and seafood.

This comes on top of the current cost of living crisis, which has resulted in significant price increases in food and necessities in the past couple of years.

Last week, Far North Queensland suffered record-breaking rainfall, with some areas receiving 2,000mm of rain following ex-Tropical Cyclone Jasper, causing severe flooding in many agricultural areas.

Heavy rain destroyed and washed away crops, while power outages caused by flooding made it impossible for farmers to preserve their harvest.

Queensland Farmers Federation CEO Jo Sheppard painted a bleak picture of the flooding’s aftermath as he predicted no farmer in the region would be spared from the impact.

The CEO believed the financial losses would be catastrophic for producers and expected a summer fruit shortage.

“We’re hearing the banana harvest was well underway, and while there are bananas in storage, they are unable to get them anywhere,” he said, as reported by The Australian newspaper.

“It has been particularly devastating for mangoes after an absolute bumper season. There’s been orchards completely flooded, trees uprooted and washed away, power outages.

“It has caused havoc in terms of cold rooms where fruit fresh fruit has been stored and has a significant impact on mangoes, papaya, and melon.”

Popular seafood products such as prawns and barramundi also suffered from the heavy rain, Mr. Sheppard added.

“While a lot of prawn harvest has already taken place, certainly there’s going to be impacts,” he said.

“Also, barramundi farms will see a significant supply disruption.”

Significant Increases in Grocery Costs This Christmas

Mr. Sheppard’s remarks come after a new study by Deakin University revealed that grocery costs rose again this Christmas, continuing the upward trend observed since 2020.

Christina Zorbas, a research fellow at Deakin University, said shopping costs would put pressure on consumers this year, especially for pantry staples such as potatoes, frozen vegetables, milk, and cheese.

“For traditional Christmas fare such as ham and seafood, prices are a bit cheaper than last year, but these items are still on the expensive end compared to other staples,” she said.

“In comparison, it is worrying that the price of chicken has continued to rise from $3.55 (US$2.40)/kg in 2020 to $5.50/kg in 2023.”

A flooded area at Cairns Airport in Cairns, Australia, on Dec. 18, 2023. Brian Cassey/AFP via Getty Images

While Ms. Zorbas noted that some fruits and vegetables, such as strawberries, cherries, peaches, apricots, lettuce, cucumber, and avocado, were cheaper than last year, there was a considerable rise in summer fruits.

Mangoes recorded the highest increase at 54.4 percent, followed by pineapples at 22.2 percent and red grapes at 9.8 percent.

Zucchini saw a 36.4 percent drop in prices, while avocado and apricots also fell by 35 percent.

In addition, many products in the bread and dairy categories experienced price increases of between 5 and 8 percent.

Ms. Zorbas advised consumers to remain cautious and plan ahead when shopping to avoid bill shock.

“To beat the price rises this Christmas, people should try to pre-plan their grocery shop, look for food that is in season and cheaper and be wary of all the marketing designed to push us towards buying unnecessary items during the festive season,” she said.

Meanwhile, new insight from the National Australia Bank showed that six in ten Australians would change their spending habits this Christmas to cope with rising living costs.

The bank said consumers were likely to make use of loyalty programs to earn rewards points, trade down on brands or products, or take advantage of big sales and discounts.