The high fuel costs in Brazil will push Australian food prices up, according to a finance expert.
“Normally, Australia would be unaffected by the short supply of Brazilian sugar. As we consume our locally produced sugar. But because of the bad weather and the smaller harvest size, the increase in the spot price is set to have a big impact on Aussie consumers for another two years,” Shae Smith, Editor of Money Morning writes.
He points towards the shortage in sugar cane in the country as the cause for the increased prices, as 60 per cent of its sugarcane production is used for ethanol-based fuels.
Smith’s article appears in full on the Money Morning website.