The government has told consumers they will pay more for essential foods as a result of bushfires and drought, while demanding supermarkets "stump up" to help struggling farmers.
At a press conference on Tuesday, Prime Minister Scott Morrison stood beside Minister for Agriculture Bridget McKenzie as she repeatedly told the Australian public they would have to pay more for fresh food staples including fruit, vegetables, milk and meat.
"In terms of prices for food, you might have seen reporting that supermarkets are letting the Australian public know that they'll have to pay more for their red meat. Yes, you will," she said.
They'll have to pay more for their fruit and vegetables because of the bushfires and the drought. Yes, you will.
"The supermarkets also need to let the Australian public know that, because of the bushfires and the drought, you will have to pay more for your milk."
The National Party deputy leader pointed the finger at the nation's supermarkets, saying they should "not just talk about being the fresh food people but get on with supporting" struggling farmers.
"Processors are doing the right thing by farmers by actually paying milk cheques when in many cases they're not getting the product. Therefore, that's having an impact on their business," Senator McKenzie said.
It's up to the supermarkets to not just talk about being the fresh food people but get on with supporting, in a very real and tangible way. Because farmers don't grow food for free…They need to make a living.
"That means we need to pay the cost of producing the food."
Drought and bushfire are "severely impacting" both farmers and processors, "so the other end of the supply chain needs to stump up", Senator McKenzie said.
There are 19,000 "primary producers, farmers, fishers and foresters" within the impacted areas, she said.
The unprecedented bushfires claimed 28 lives and torched more than 10 million hectares.
They have decimated crops, tainted vineyards, destroyed feed, killed an estimated 100,000 cattle, and left dairy farmers without power to keep fresh milk.
Supermarkets at odds with government over bushfires' consumer price impact
Senator McKenzie's claim that consumers will have to pay more for fresh food was not echoed by the nation's major supermarket chains.
A spokesperson for Woolworths, the nation's biggest supermarket chain, told The New Daily that the company had been "actively monitoring the impact of the bushfires on our fresh food supply chain with our suppliers".
At this stage, we have yet to see an impact on our fresh food supply because of bushfires," Woolworths said.
However, the spokesperson said it was "still early days" and that "if there are farmers within our supply chain impacted by bushfires, we will be happy to discuss the ways in which we can support them to get back on their feet."
Read more: Why Woolworths ‘fessed up to that $300 million underpayment
A spokesperson for Coles, the nation's second biggest supermarket chain, told The New Daily that some products, particularly in fresh produce, "may be unavailable or in limited supply in the short term".
Many of our suppliers have been directly impacted by the fires and drought and we’re working hard to support them during this difficult time," a Coles spokesperson said.
Coles, which has been sourcing its Own Brand fresh milk directly from dairy farmers in Victoria and New South Wales since July, said that none of its contracted farmers had been "directly impacted" by the current fires.
"However, we are in regular contact with them and will provide further assistance if required," the spokesperson said.
Last month, the competition watchdog alleged that Coles had short-changed drought-stricken dairy farmers by millions of dollars.
Australia's third biggest supermarket chain, German discount juggernaut Aldi, said it did not foresee prices changing for consumers.
“Over recent weeks we have maintained ongoing dialogue with our business partners in bushfire affected areas to understand impacts on their employees and supply chain," an Aldi spokesperson told The New Daily.
At this point, despite operational challenges that some of our suppliers face, we don’t foresee an impact on consumer prices." Aldi