The grocery bill that will shock you: How remote Australians pay triple for fresh food

When Perth-based advocate Megan Krakouer walked through a small supermarket in Halls Creek last August, she couldn't believe her eyes.

Tomatoes priced at nearly $12 per kilogram, watermelon at $6 per kilogram—prices that would make even the most budget-conscious shopper's jaw drop.

But what Krakouer discovered isn't just an isolated problem in Western Australia's remote Kimberley region. It's part of a national crisis that's forcing thousands of Australians to choose between eating well and paying their bills.

A shocking new investigation by consumer advocacy group CHOICE has revealed the true extent of Australia's remote food pricing crisis.

When they mystery-shopped four remote community stores across Western Australia and the Northern Territory, they found that a basket of nine basic grocery items cost an average of $99.38—more than double the $44.70 you'd pay for the same items in capital cities.

The numbers are staggering enough, but the reality behind them is even more troubling. In one remote store, CHOICE found tins of canned tomato soup selling for $7 compared to $2.50 in major supermarkets, while a tin of Spam was priced at $11 versus the usual $6.80 in capital cities. CHOICE Remote Store Analysis

A quarter watermelon for $18? Welcome to remote Australia

Back in the Kimberley, the situation Krakouer witnessed represents daily life for thousands of Australians. At small-town supermarkets across Western Australia's far north, you might pay $18 for a quarter of a watermelon or fork out $30 for a kilogram of truss tomatoes.

Compare that to Sydney or Melbourne, where you'd pay around half that price for watermelon and three times less for tomatoes.

The price disparity becomes even more stark when you look at basic fruits. In Fitzroy Crossing, red gala apples were selling for $12.99 per kilogram and pears for $10.99. Even in the larger coastal town of Broome, those same apples still cost $8.90 per kilogram—nearly double what metropolitan shoppers pay.

Former Halls Creek health worker Marianne Nungarri Skeen sees the health consequences daily. 'It's a vicious cycle that needs to be stopped,' she said. 'We need to have something better in place.' When fresh food is priced out of reach, families turn to processed alternatives, contributing to higher rates of diabetes, heart disease, and kidney problems in remote communities.

Why your postcode determines your grocery bill

The Australian Competition and Consumer Commission found that prices are 'significantly higher' in remote locations due to freight costs and lack of competition. Wayne Bergmann, managing director of Leedal Pty Ltd which owns Fitzroy Crossing's Tarunda IGA, breaks down the brutal economics: 'On average across the board, we probably spent about $700,000 a year on freight.' Add to that over $1 million annually in insurance costs that doesn't even cover floods, and you begin to understand the challenge.

But freight is just part of the story. Remote stores face a perfect storm of cost pressures: small populations mean lower sales volumes, worker shortages drive up labour costs, and with often just one store serving an entire region, there's no competition to drive prices down.

Bergmann acknowledges the social responsibility his store carries. 'We see the supermarket in Fitzroy as a bit of a social responsibility,' he said. 'I don't think we're the cheapest but I think we're in between.' The store has implemented strategies like selling blemished produce at lower prices and sourcing meat from local pastoral stations to help reduce costs.

When government solutions miss the mark

The federal government launched its Low-Cost Essentials Subsidy Scheme in July 2024, initially promising to reduce costs on 30 essential items across 152 remote stores. However, fresh fruit, vegetables, and meat—the items residents most desperately need—have largely been excluded from the program.

Indigenous Australians Minister Malarndirri McCarthy has highlighted the health implications, noting high rates of kidney disease, rheumatic fever, and diabetes in remote communities. 'What we want to see is food products that actually assist in healthy living,' McCarthy told ABC Radio.

The government cites the program delivery company's lack of 'cold storage capacity' for the focus on canned goods instead of fresh produce. But as Fitzroy Crossing nutritionist Clint Bussey points out, 'With tinned items, when people consume these regularly their salt intake increases, so then you get things like renal diseases and high blood pressure.'

The human cost of expensive groceries

Financial counsellor Bettina Cooper from Mob Strong Debt Help, who travels to remote communities, puts it simply: 'When we're travelling to remote communities there's often only one choice of a local store. So whatever price is there is the price you pay.' CHOICE Remote Communities Report

For families relying on Centrelink payments or minimum-wage jobs, these prices create impossible choices. Patrick Davies, a Fitzroy Crossing resident, notes that 'the employment benefits that people do receive don't necessarily meet the needs of families.' Some residents drive hours to larger towns like Broome or Derby to shop, but that means fuel costs and time away from work or family.

The ripple effects extend beyond individual households. The National Indigenous Australians Agency is developing a National Strategy for Food Security in Remote First Nations Communities, recognising that 'access to nutritious affordable food is critical to improving health outcomes in remote communities and building better futures'.

Hope on the horizon?

Despite the challenges, there are some positive developments. The Indigenous Consumer Assistance Network reports that communities like Wujal Wujal in Far North Queensland are experiencing better food prices since a new community-controlled store opened.

Consumer advocacy groups including CHOICE, along with First Nations organisations, have submitted recommendations to the government including exploring price caps on essential items and mandatory pricing information on all products.

What needs to happen next

The scale of this problem demands urgent action beyond the current subsidy scheme. Financial counsellor Lynda Edwards argues that 'policymakers should also consider increasing social security benefits to better reflect the actual cost of living in extremely remote communities,' noting that 'the current system that's in place now is just not working.'

Solutions could include:

• Expanding the subsidy scheme to include fresh produce with proper cold storage infrastructure
  
• Investigating price caps on essential items in consultation with communities
  
• Increasing social security payments for remote area residents
  
• Supporting community-controlled stores and local food production initiatives
  
• Improving transport infrastructure to reduce freight costs

The data is clear: Australians shouldn't have to pay double or triple for basic groceries simply because of where they live. When a tin of soup costs nearly three times more in a remote community than in a capital city, we're not just talking about market forces—we're talking about basic fairness and access to nutrition.