The Australian Government is tackling issues of access to affordable food in remote communities, announcing moves to cap the cost of essential food items and a trial of subsidised freight and logistics.
In a ‘Closing the Gap’ speech on 10 February, Prime minister Albanese noted groceries on average cost more than double in remote areas than what they do in capital cities, and supplies can be erratic.
“The resulting food insecurity can have serious health impacts, including cardiovascular and kidney disease,” he said.
“I am pleased to announce we will ensure the costs of 30 essential products in more than 76 remote stores are the same as what you’d pay in the city as well as boosting warehouse capacity to shorten freight distances and to make supply chains to remote communities less vulnerable.
“We will also build on the success of the Arnhem Land Progress Aboriginal Corporation’s Nutrition Workforce initiative, which trains First Nations shop staff to promote good nutrition.”
Remote retailers welcome support
Outback Stores, which provides retail store management and support services to Indigenous owned community stores, welcomed the moves to cap the cost of essential food items in remote stores.
“We have been working with the Remote Food Security Work Group for several months on a strategy to reduce the cost of high-volume products,” said Michael Borg, CEO of Outback Stores.
“Outback Stores already has a policy of lower pricing for essential food items, such as fresh fruit and vegetables, but the cost of freight and higher operating costs makes it hard to keep all prices down,” he said.
“Subsidising procurement and logistics recognises the disadvantage faced by many small, remote communities while allowing community-owned stores to operate commercially.”
Remote food pricing
The list of essential items and goods was developed by the Remote Food Security Working Group, which consists of industry, government and non-government members.
The group is collaborating with manufacturers to find solutions for remote food pricing.
In addition to the stores it manages, Outback Stores will support the Australian Government’s trial by helping to build the capacity of stores outside its business network.
Examples of current subsidised pricing at Outback Stores managed stores are:
- 1kg flour – $1.40
- 1lt UHT milk – $1.60
- 750g rolled oats – $1.60
- 575g wheat biscuits – $4.50
- 100 pack of tea bags – $4.50
- 12 pack toilet paper – $6.00
- 500ml shampoo and conditioner – $2.00
- medium packs of nappies – $10.99
- 224 pack of facial tissues – $1.85
As part of the trial, Outback Stores has 38 items across 10 product groups matched to corporate retail pricing. This will take immediate effect in all 58 locations currently managed by Outback Stores.
“Outback Stores is proud to make a positive difference to the health, employment and economies of remote Indigenous communities by improving affordability and availability,” Mr Borg said.
“We look forward to working with all industry stakeholders on this exciting affordability initiative.”
Outback Stores is an Australian Government-owned company that manages 58 retail community stores in some of the most remote locations across the country.