Relentless downpours and flooding are likely to hit fruit and vegetable supply in the coming weeks, further pushing up prices.
鈥淭he impact will be huge,鈥 senior Westpac agricultural economist Nathan Penny said, citing extensive damage growers have suffered.
Consumers are likely to face price hikes on fruit and vegetables at the supermarket, especially for pears, apples, stonefruit, berries and leafy vegetables.
鈥淟eafy green vegetables will struggle with supply for a while, particularly areas harder-impacted like Northland, Auckland and the Bay of Plenty more than the South Island,鈥 Penny said.
He said these vegetables were generally supplied to local areas, so North Islanders were likely to see higher prices and lower supply at supermarkets. Freight was challenging for this type of vegetable.
Fruit and vegetable prices were already soaring, even before the recent storms.
On Tuesday, Stats NZ said grocery food prices last month were 1.8 per cent higher than in December. But fruit and vegetable prices shot up 3.1 per cent in just one month.
Penny said meat and dairy supply will be less of an issue nationwide but will be difficult to provide to remote communities impacted by Cyclone Gabrielle.
听鈥淭here is impact but because we are able to source from other parts of the country, it鈥檚 more about getting it into a supermarket and if supply can reach an area,鈥 he said.
鈥淭his is a big event. It鈥檚 heartbreaking for many. Although agriculture is important, what matters is the impact on people.鈥
Infometrics principal economist Brad Olsen said Hawke鈥檚 Bay growers produced about 65 per cent of apples and pears in Aotearoa.
鈥淭here will definitely be a significant disruption on the supply of apples and pears,鈥 Olsen said.
Hawke鈥檚 Bay also supplied 22 per cent of the country鈥檚 berry fruit and 16 per cent of stonefruits, according to Olsen.
鈥淕iven the size of supply for Hawke鈥檚 Bay, you will see it hit across the country but immediate impact will be felt in the North Island just because of the geographic location,鈥 he said.
University of Auckland senior lecturer Dr Aadhaar Chaturvedi said the impact of current weather events on farm and fruit yields was yet to arrive.
鈥淚 suspect that it would have adversely impacted yields especially in the fruit sector. This would obviously put some upward price pressure on fruit prices in coming months,鈥 Aadhaar said.
Speaking to RNZ this morning, Foodstuffs chief executive Chris Quin said the company had 鈥渁 reasonable picture of supply鈥 for Hawke鈥檚 Bay supermarkets.
He said Wairoa鈥檚 only supermarket had two days鈥 grocery supply and access to fresh green vegetables would be 鈥渄ifficult鈥 in impacted areas.
Quin said options included moving fresh produce from the South Island or providing chilled and frozen vegetables to the community.
Forestry slash and debris from the apple industry is seen at the mouth of the Esk River in Hawke's Bay after the devastating floods this week. Photo / Warren Buckland
The Herald reported this week that orchards and听.
Olsen said he had not been able to quantify the impact of Cyclone Gabrielle yet but moving produce was now a challenge.
鈥淲ith bridges washing away, how much [produce] is going to be choppered in? Seeing companies doing it themselves will have a cost,鈥 Olsen said.
鈥淚t鈥檚 going to take longer to get produce moving around. They need to send more trucks and trailers - there鈥檚 more movement over a longer distance.鈥
Olsen added: 鈥淚t will hit the domestic supply chain. There are no quick fixes.鈥
A limited level of supply over the coming weeks to months could be expected.
Recently some in the horticulture sector have raised concerns over听.
鈥淪ome vegetable growers in Pukekohe are reporting losses of up to 30 per cent due to the weather event that happened in that area in late January,鈥 Vegetables NZ chair John Murphy said, referring to the Auckland Anniversary weekend floods.
He said current weather and trading conditions could deter growers from staying in business.
Murphy added: 鈥淪ome growers are questioning whether they will be able to stay in the industry. This is a risk to New Zealanders鈥 food security, and health and wellbeing, as well as to regional economies.鈥
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