Money & Banking

Woolies price spike about to hit on everyday item

Woolies price spike about to hit on everyday item

Woolworths CEO Brad Banducci has warned customers that their weekly bill is set to rise due to a price surge in meat.

“We do expect to see continued meat price increases, and meat has been very challenging, as you know,” Mr Banducci said.

“And really, we’ve seen with the rains we’ve had that a lot of cattle has been kept on the land.

“And so there will be continued meat price pressure coming through in the short term given that there’s a six-year cycle in growing conditions on these things for red meat.”

The price increase is due to cattle supply tightening in 2021, according to the Meat and Livestock Australia's Cattle Industry Projections.

“Cattle supply is expected to tighten in 2021, as producers retain more breeding stock to rebuild their herds,” the report reads.

“The increase in heifers being retained for breeding purposes will cause the female slaughter percentage to drop in the second half of 2021, this is expected to fall below 47 per cent, signalling a technical rebuild.”