Omicron price rises a tough mouthful to swallow

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Economists expect Tuesday’s Bureau of Statistics data to show an increase in inflation, and part of that is likely to be rising agriculture prices.

Ardi Edgu, owner of butcher and restaurant Ardi’s Block to Grill in Sydney’s Surry Hills, says meat supply has become so unreliable he has cut out a large chunk of his supply chain and gone back to “the good old days”.

“We’re in a very high-price environment,” said Cheryl Kalisch Gordon, Rabobank senior commodity analyst, which she attributed to a perfect storm of global price pressures and local input and supply constraints.Higher prices are being felt across the agricultural supply chain, from abattoirs to butchers’ blocks, in restaurants and pre-packaged meal providers, and they are not expected to abate soon.

With many supermarket shelves stripped bare, meat has been a highly visible example of the supply chain disruptions caused by the staffing and logistics shortages due to the omicron COVID-19 variant.Woolworths on Monday announced it would focus on supplying popular items such as chicken breasts and thighs, and BBQ-friendly items such as sausages and seafood heading into Australia Day.

While supply last year was hampered by the effects of drought and bushfires, the main issue since the start of this year had been swaths of the workforce being forced into isolation after catching or being exposed to COVID-19.

 

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