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Prices for SPC tinned food set to rise, impacting vulnerable people and charities.
A tin of SPC tomatoes has not risen in price for a decade, but that's about to change.
Key points:
- SPC's Robert Giles says their costs have risen significantly, so they have to hike their prices
- Albury Wodonga Regional FoodShare general manager Peter Matthews says people will struggle in April
- He says Easter and school holidays add to the burden on families
SPC chief executive Robert Giles said almost everything that went into creating the company's tinned produce had spiked in price.
High iron ore prices mean more expensive tins, rising fuel costs will affect distribution and imports, and even record wheat prices will see more expensive spaghetti.
"Every week, we are seeing more prices, import costs, commodities passed onto us," Mr Giles said.
Those costs in the supply chain will eventually hit shoppers' wallets.
"We have notified our retailers of our intention to move price … so it's up to them in terms of how much they pass on," he said.
"We will be working to, unfortunately, see our prices move up. We have tried to absorb them wherever we can.
"A can of Ardmona tomatoes hasn't gone up in 10 years, but we have just got to the stage where [costs] are so significant we have had to pass them onto our consumers."
This year's inflation has taken Mr Giles, who has decades of experience in the sector, by surprise.
"I think the drought in the early part of the century would probably be the only other major [rise] outside the GST introduction piece, but this definitely is the largest wave of inflation I have seen on so many areas.
"Record wheat prices means the Australia pasta I am buying for my canned spaghetti is higher.
"All the commodities that I touch along the supply chain seem to be passing this through to us."
Charity braces for surge in demand
Charitable organisations like Albury Wodonga Regional FoodShare, which helps provide food to people in need in the region, is bracing for a surge in demand due to inflation.
General manager, Peter Matthews, said it would take a few weeks for vulnerable people to change their shopping habits and realise they no longer could afford groceries.
"That will bite probably [be] more in April," he said.
"We have got events in April as well.
"We have Easter coming, school holidays, and all those things put stress on family incomes."
Tinned produce makes up a large portion of the organisation's food store, and it is unable to rely on donations alone to meet local demand, so needs to purchase these items.
Mr Matthews expects the charity will now feel the pinch as tinned food prices rise.
He said people would also have less money to donate towards the service due to inflation.
It is also competing for donations as many residents are putting their money towards helping flood-affected areas in Australia.
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