In the wake of recent floods, Australia’s two largest supermarket chains have vowed only to import fruit and vegetables as a last resort, reported daily newspaper The Australian.

While Australian Chamber of Fruit and Vegetables Industries President Shane Schnitzler predicted price rises of more than 20% to remain for up to 14 weeks, supermarket chains Coles and Woolworths do not plan to import, the newspaper reported.

"We will be sticking with our farmers and have amended our specifications for specific products to enable products that have been flood-affected but are still edible and have the appropriate food value to be sold,” Woolworths CEO Michael Luscombe was quoted as saying.

A Coles spokesperson told the newspaper the company had no plans to import and it was too early to assess the long-term implications of the floods on fresh fruit and vegetable prices.

Wooloworths also made an announcement to the Australian Stock Exchange (ASX) that it had reduced its top earnings forecast by five percentage points, citing market uncertainty combined with impacts from extreme weather.

“This uncertainty, together with incurring costs, not covered by insurance, associated with the NZ earthquakes and the Australian floods has resulted in Woolworths amending is full year guidance,” the announcement said.

Photo: www.woolworths.com.au

Source: www.freshfruitportal.com