Australians are being warned to prepare for a massive rise in grocery prices in 2022.

Essential supply chains have been threatened by setbacks due to the pandemic, leading to a dramatic price hike on imported products and a severe container shortage.

Photo credit: Verdict Food Service.​

Dairy prices have been reported to soar ahead of the Christmas season due to diminished supply and inflated demand.

Supermarket giants such as Coles, Woolworths and Aldi have all lifted milk prices by 10 cents a litre, meaning the shortage could impact cheese, cream and yogurt products in the coming months as well.

Cafes have also warned that coffee prices will go up by around $1 per cup in urban and metropolitan areas due to the shortages.

But now, another setback to the national supply chain is looming on the horizon: Australia's limited supply of urea - a vital ingredient in the country's diesel fuel supply that allows trucks to deliver essential goods.

It was reported that China has cut off their urea exports, disabling Australia’s trucks to carry essential grocery items to supermarkets across the country.

The anti-pollution additive, also known as a diesel exhaust fluid called AdBlue, is required to make diesel vehicles run.

But the federal government assures residents that there is enough urea to last through Christmas. However, if more cannot be sourced by early February, prices of essential goods would most likely continue to surge.

Paul Zahra, chief executive of the Australian Retailers Association, said the shortage in urea would significantly affect the country’s largest supermarkets.

“Supply chains have been under enormous pressure throughout the pandemic, and this potential shortage of AdBlue could certainly pose yet another challenge for Australian retailers and their suppliers,” Mr Zahra said.

“The ARA is working closely with the federal government’s task force, which is looking at developing solutions to future supply constraints.”

On Monday, Trade Minister Dan Tehan said that China’s ban on urea exports raised Australia’s urgency to find new and more stable supply chains.

“What it clearly shows is that the pandemic has demonstrated that some supply chains are fragile,” he said.

“We’re working very closely with the sector here in Australia to make sure that we’re all seamlessly working to ensure that this supply of AdBlue will continue for the foreseeable future.”

The trade minister said he was approaching “key overseas markets” to establish new urea supply lines for Australia.

“There is some supply in Indonesia which we should be able to access over the coming weeks,” he said.

“There’s also been some representations that have been made to Saudi Arabia, to the UAE, to Qatar and also to Japan.”

There’s still time to prepare as any potential increases in grocery prices are not expected to occur until 2022.

 

[Ricci]

Tell me something new. It would be newsworthy if they told us that prices were going to plummet (in my dreams)!! We need to be more self sufficient as a nation or else we will continue to lurch from one disaster to another due to someone elses whim.

 

[Fat&fancy]

Australians warned of MASSIVE grocery price hike coming next year​

Australians are being warned to prepare for a massive rise in grocery prices in 2022.

Essential supply chains have been threatened by setbacks due to the pandemic, leading to a dramatic price hike on imported products and a severe container shortage.

Photo credit: Verdict Food Service.​

Dairy prices have been reported to soar ahead of the Christmas season due to diminished supply and inflated demand.

Supermarket giants such as Coles, Woolworths and Aldi have all lifted milk prices by 10 cents a litre, meaning the shortage could impact cheese, cream and yogurt products in the coming months as well.

Cafes have also warned that coffee prices will go up by around $1 per cup in urban and metropolitan areas due to the shortages.

But now, another setback to the national supply chain is looming on the horizon: Australia's limited supply of urea - a vital ingredient in the country's diesel fuel supply that allows trucks to deliver essential goods.

It was reported that China has cut off their urea exports, disabling Australia’s trucks to carry essential grocery items to supermarkets across the country.

The anti-pollution additive, also known as a diesel exhaust fluid called AdBlue, is required to make diesel vehicles run.

But the federal government assures residents that there is enough urea to last through Christmas. However, if more cannot be sourced by early February, prices of essential goods would most likely continue to surge.

Paul Zahra, chief executive of the Australian Retailers Association, said the shortage in urea would significantly affect the country’s largest supermarkets.

“Supply chains have been under enormous pressure throughout the pandemic, and this potential shortage of AdBlue could certainly pose yet another challenge for Australian retailers and their suppliers,” Mr Zahra said.

“The ARA is working closely with the federal government’s task force, which is looking at developing solutions to future supply constraints.”

On Monday, Trade Minister Dan Tehan said that China’s ban on urea exports raised Australia’s urgency to find new and more stable supply chains.

“What it clearly shows is that the pandemic has demonstrated that some supply chains are fragile,” he said.

“We’re working very closely with the sector here in Australia to make sure that we’re all seamlessly working to ensure that this supply of AdBlue will continue for the foreseeable future.”

The trade minister said he was approaching “key overseas markets” to establish new urea supply lines for Australia.

“There is some supply in Indonesia which we should be able to access over the coming weeks,” he said.

“There’s also been some representations that have been made to Saudi Arabia, to the UAE, to Qatar and also to Japan.”

There’s still time to prepare as any potential increases in grocery prices are not expected to occur until 2022.

This is VERY worrying and we should boycott China and not import anything from them!
No Adblue and we're in huge trouble, most trucks run on it!

 

[Liz]

Why cannot we produce it here in Australia, as far as I can see if it produced from synthetic ammonia and carbon dioxide. There must be a special additive if it is sourced from China. We must become more self sufficient and stop relying on overseas countries especially China. And wouldn't it be good for the job market as well if we were more self sufficient. From memory as a child farmers used to roller feed cattle on urea and mollasses.