AS FUEL prices soar and producers struggle with the impact of recent flooding, Hunter businesses are battling to maintain low prices.
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Farnham's Butchery owner Kevin Farnham told the Newcastle Herald his business has made every effort not to pass the growing cost of meat on to customers.
"We try and absorb 99 per cent of the increasing costs so I haven't put my prices up in 12 months," Mr Farnham said.
"It's a bit of a struggle but I think in the long run if we look after our customers they will appreciate it."
Along with stores in Fletcher and Wallsend Village, Mr Farnham has a butchery in Nelson Street, Wallsend, which has operated for close to 30 years.
The business sources a large portion of produce from the Stroud area. While this keeps transport costs low, Mr Farnham said some other suppliers are looking to introduce a freight charge - meaning he will have to "seriously look" at increasing prices.
"Some of my prices would have close to doubled since the start of COVID," he said.
"This is a combination of COVID, increased fuels costs and the good rainfall pushing meat prices way up.
"We can only wear these price increases for so long."
General Manager at Hunter Fresh Garrett's Wholesale Derrick Moodley said a lack of supply has lead to steep increases in vegetable prices.
"We get a lot of produce from the Lockyer Valley and most of that area has been affected by floods," Mr Moodley said.
"The flooding created gaps in the planting season which left the market extremely short.
"We are spending all day on the phone battling with Sydney and other large markets for the limited produce."
Mr Moodley, who has worked in the fresh produce industry around Newcastle for close to 40 years, said this widespread price increase is the worst he has seen.
"On a lot of the produce we are looking at close to a 40 per cent increase when compared to pre-COVID levels," he said.
"This week because of the floods we've seen lettuce at $55 a box. This would usually only average around $20.
"We are basically seeing a flood of bad events which have all culminated in these record prices."
Aside from the floods, Mr Moodley said freight costs are being passed on to wholesalers - with some companies introducing a 25% "fuel levy" on top of already inflated transport costs.
Transport companies and producers are also still struggling with a shortage of workers caused by COVID.
"They lost a lot of drivers who went back to their countries of origin and now they have a shortage of big rig drivers," Mr Moodley said.
"Growers are doing it tough as well because labour costs are so expensive. There are still those shortages in staffing which started during COVID due to a lack of backpackers and international students."
The Australian Competition and Consumer Commission has predicted petrol prices will fall in the coming weeks. Combined with the resumption of planting, Mr Moodley said this means consumers should start to see lower vegetable prices.
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