Groceries now cheaper in London than Tasmania

It is now cheaper to buy groceries in London than Launceston.

TasFarmers has compared the cost of a small basket of goods at Australian supermarkets with prices at Tesco in the UK.

The organisation’s president, Ian Sauer, said basic groceries are more expensive in Tasmania despite the UK importing a far greater share of its food to feed its population.

“A look at the numbers tells a staggering story, Australian households are being slugged more for everyday basics than shoppers in the UK, and not just by a little,” Mr Sauer said.

“We’ve found that basic staples like bread, butter, milk and eggs are all cheaper at Tesco in London than at our local supermarkets, less than 25 kilometres from a farm gate in Tasmania.

“The price gap on bread alone is $1.89.

“Free-range eggs and milk are also noticeably more expensive here.”

Mr Sauer said a 250g punnet of blueberries had the most significant cost difference, setting Tasmanian shoppers back $9.26 more than what their UK counterparts paid.

“Our fresh produce is nowhere near as affordable.

“For all the food miles and supply chain spin, consumers are being taken for a ride, and our farmers aren’t seeing the benefits.

“It’s time for a forensic look at the problem, because the numbers just don’t add up.”

Rising food costs are something that Mr Sauer said was not the fault of farmers.

"Farmers feel isolated and frustrated by having no say in how prices are set along the supply chain, and in many cases, they’re the ones subsidising it.

“By the time a product hits the supermarket shelf, the price farmers receive isn’t within a bull’s roar of what retailers charge.

“Take McDonald’s chips, for example: farmers make just 11 cents on a $5 serve.

“Someone else is clipping the ticket beyond the farm gate, and it’s not just the supermarkets.”

Mr Sauer said more transparency was needed across the food supply chain.

“It’s the old adage: we don’t know what we don’t know.

“Our farmers are efficient, our vegetable processors are highly cost-effective, so why aren’t we cost-competitive with India, or price-competitive with the UK at the checkout?”

TasFarmers is calling for a parliamentary inquiry and an independent economic analysis of the food supply chain to find out what is driving up consumer prices.

“Consumers deserve to know who’s profiting, where inefficiencies lie, and who’s using their influence unfairly,” Mr Sauer said.

“This is about calling out the absurd.

“How can food be cheaper in London than in Launceston?”

Mr Sauer said there was no clear picture of what happens to prices from paddock to plate.

“If Coles and Woolworths are confident in their margins, they shouldn’t fear scrutiny.

“It’s time for a proper economic analysis of the Tasmanian food supply chain.

“And in the meantime, Tasmanians should back their own by buying local first.”

TasFarmers is calling on the public to buy in-season produce grown and produced in the state.

“Tasmania is known for producing some of the cleanest, tastiest food in the world,” Mr Sauer said.

“If we’re going to fix the system, it starts with consumers actively seeking out and choosing in-season Tasmanian food.

“Our supermarkets should have nothing to hide, and fresh, local produce should be front and centre in every store, because shoppers are demanding it.”