Australia Facing a Leafy Green Shortage Due to Eastern Floods

Australia is facing a leafy green shortage due to the worst floods recorded in the country. The floods started on February 23, 2022, and are still occurring, affecting South East Queensland, Wide Bay–Burnett, and parts of coastal New South Wales in eastern Australia, affecting both plantations and warehouses, and damaging produce.

Australia produces about 120,000 metric tons of lettuce every year and holds an approximate export value of USD 6.9 million. The lettuce harvested allows Australia to export about 1,543 metric tons and supply local demand. So far this year, Australia has been facing a lettuce shortage due to the impact of the Eastern floods. Floods have reached plantations and damaged crops. Roads are also flooded and blocked, preventing plantation workers from fertilizing crops.

Due to reduced supply, the price of leafy greens increased up to 75%. Lettuce prices doubled, reaching values of USD 4.50 per lettuce head. Due to increased local demand and prices, many producers and exporters have opted to sell their supply in the local market instead of exporting it. At Melbourne wholesale markets, the price of Lettuce Iceberg, faced a constant price change YoY. The supply shortage is expected to last until April or May.

Source: Australia Department of Agriculture, Water and the Environment

Other reasons affecting the price of Australian leafy greens include the effects of COVID-19, increased fuel costs, and increased production costs. In addition, before the floods, the Australian harvests were already lower than in previous years due to the labor shortage.

In addition to affecting exports, the lettuce supply shortage is also impacting the local industry. Australian restaurants face lettuce and vegetable shortages and decreased margins due to increased vegetable prices, and it will have to increase lettuce imports to cover local demand and reduce the effect shortage has on the local economy.