Supermarket boss issues a grim warning about fresh produce: 'Worse than anything since the 1970s'

By MATT JONES, SENIOR NEWS REPORTER, AUSTRALIA Published: 23:58, 3 April 2026 | Updated: 00:27, 4 April 2026 Aussies will pay at least 20 per cent more for groceries for at least six months due to the impact the war in the Middle East is having on fuel supplies, a supermarket boss has warned. Ritchies CEO Fred Harrison told the Daily Telegraph shoppers should prepare to see price rises for fruit, vegetables, meat and milk as retailers are forced to pass on rising costs. 'We have suppliers who are putting on a fuel levy and we are absorbing that,' Mr Harrison said. 'Prices are stable right now but if this continues, prices will rise in the next two to three weeks.' NSW Farmers economist Sam Miller said predicted price rises of up to 20 per cent may only be 'the starting point' because fuel costs are affecting both production and transportation. Transport makes up to a third of the cost of foods like onions, strawberries, mushrooms, kiwifruit and pears and prices for those could jump by 10 per cent. 'People are saying this is worse than anything since the 1970s. It is hard to be optimistic,' Mr Miller said. Ritchies CEO Fred Harrison said Aussies should prepare to see price rises for fruit, vegetables, meat and milk as retailers prepare to pass on rising costs. Shoppers could soon pay at least 20 per cent more for fruit and vegetables due to the war in the Middle East While the Middle East is known for being one of the world's most dominant suppliers of oil, also provides up to 45 per cent of the world's urea. It is used in nitrogen fertiliser that encourages high crop yields and is used for wheat and vegetables. Aussies could soon be paying 30 cents a litre more for homebrand milk, as dairy producers struggle with fuel and fertiliser shortages caused by the Middle East conflict. Industry leaders have written to Coles and Woolworths requesting a price rise. A two-litre bottle of homebrand full cream milk currently costs $3.20 at both Coles and Woolworths. It could soon cost 60 cents more at the checkout, allowing producers to also hike up the price of other brands while remaining competitive. Prime Minister Anthony Albanese on Thursday announced further cuts to the fuel excise after state and territory leaders agreed to pass on the GST windfall to motorists at the bowser. Australia's dairy farmers have also written to the Prime Minister, calling for the sector to be recognised as a priority fuel user. 'Cows must be milked every day, milk must be collected every day, and it must reach processors and consumers quickly,' Australian Dairy Farmers president Ben Bennett said. Oil tankers have been unable to pass through the Strait of Hormuz Master Grocers Australia CEO Martin Stirling said the Australian economy was too reliant on imports and that the government needed to make plans to avoid a similar crisis in the future. Farmers across the country are paying more than $3 a litre for diesel which is presenting them with some 'of the hardest battles' according to Wagga Wagga cattle farmer Paige Hatton.  If the Strait of Hormuz, where 20 per cent of the world's crude passes through, stays blocked it would cut profitability for four out of five businesses according to Australian Retail Council CEO Chris Rodwell. A Coles spokeswoman said it was trying to stop cost rises 'flowing through to the shelf' while Woolworths has nearly doubled the levy for independent truck drivers. Foreign Affairs Minister Penny Wong said Iran was causing 'economic pain' by closing the Strait of Hormuz. 'The longer this war goes on, the more significant the impact on the global economy will be,' she said. The comments below have not been moderated. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook. You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy.