Why Aussie farmers are dumping truckloads of avocados despite prices surging at Coles

Thousands of avocados are being dumped in rubbish tips in North Queensland,

Jan De Lai from Atherton, north Queensland, shared photos of the discarded avocados last week after finding thousands of them dumped at her local tip.

‘Truck loads of avocados are being dumped in Atherton!,’ she wrote.

‘Surely they could be used for animal fodder or used to make oil? Poor farmers.’

Jim Kochi, a local farmer, told 7News that farmers in the region had begun planting more avocado trees in the last decade as demand went up.

Ben Fordham shared an image of thousands of avocados about to be dumped in rubbish tips in North Queensland

Ben Fordham shared an image of thousands of avocados about to be dumped in rubbish tips in North Queensland

However Covid meant restaurants were selling less avocado toast and farmers were left with excess produce from the new trees.

‘Those trees are now coming into production – and coming into production in a big way,’ he said.

‘The cost of putting that stuff in a package, including the labor and the cost of packaging and the cost of transport is just not worthwhile.

‘So the option is just to dump it.’

2GB radio host Ben Fordham shared the heartbreaking image of a pile of avocados at the rubbish tip.

Farmers say it’s cheaper to throw the avocados away than send them to stores to resell, Fordham explained.

‘Increasing labor and shipping costs means it’s not worth their while to pack and send the stock. Chucking them out is the cheapest and easiest option,’ Fordham said.

The image comes amid a warning the cost of food will soar by more than 12 per cent this year.

Ben Gilbert, retail analyst at investment bank Jarden, says the price increases at supermarkets will be large as inflation continues to soar.

‘Price increases are significantly larger than we expected,’ Mr Gilbert said in his survey of key retail suppliers.

The photo of the dumped avocados comes amid a warning the cost of food will soar by more than 12 per cent this year and 49 per cent of supermarkets will reduce specials

The photo of the dumped avocados comes amid a warning the cost of food will soar by more than 12 per cent this year and 49 per cent of supermarkets will reduce specials

‘Further increases are planned, either a second or a first at a planned weighted rate of 7.4 per cent. This paints a scenario where by we could see an annualised run-rate of more than 12 per cent through 2022,’ he said.

Meanwhile, he expects the number of specials and sales at supermarkets to drop.

‘Despite retailers and suppliers actively pulling promotions through January, reflecting supply chain issues, not all suppliers are able to concurrently or are planning to reduce promotions,’ he said.

‘We found 49 per cent expect to reduce promotions, while 11 per cent are unsure.’

Some groceries at Australia’s major supermarkets have already risen up to 94 per cent, data released last month revealed, with supermarkets admitting they have been forced to pass rising costs on to customers and warning it is only going to get worse.

Coles has jacked up prices by more than 3.3 per cent over the March quarter to pass on the inflated cost of shipping, fuel, meat, and fresh vegetables, and the supermarket giant warns costs could climb even further in the coming months.

Meanwhile Woolworths warned that 160 out of its top 200 suppliers has requested an increase in the cost of their product, with suppliers expected to ask for a further hike in the next 12 months.

A head of lettuce at $5.50 is now more expensive than a $4 McDonald’s cheeseburger.

Nutritionists fear the situation will be detrimental to Australians’ health as families struggling to make ends meet turn to cheaper junk food.

AMP Chief Economist Shane Oliver said the combination of skyrocketing prices and halted salaries means Australians are technically taking a pay cut.

‘That means real purchasing power, the amount of goods and services your pay will provide you is actually going backwards,’ he explained.

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