Drought Blamed For Kellogg's Breakfast Cereal Price Rise

The price of Nutri Grain, Corn Flakes, Coco Pops, Froot Loops and All-Bran will rise next year as Kellogg's is forced to hike its prices to weather the impact of drought on its core ingredients.

The maker of some of the country's most loved cereals announced the "tough decision" to increase its prices on Monday.

Most of Kellogg's cereals are made at its Botany plant in Sydney, and for 90 years the company has been using Australian-grown grain.

The price hikes will come into force in July 2020. Image: Getty

The company said in a statement that the effects of the drought have had a significant impact on the price of the core ingredients that it relies on for cereals. These include corn, wheat, oats and rice.

"We’ve worked hard across the business to drive efficiencies and find opportunities to absorb as much of the increase as possible, but unfortunately we’ve not been able to offset all of the increased costs," a Kellogg's spokesperson told 10 daily.

Corn produced for Kellogg's cereals. Image: Kellogg's

It is not known what the price increase will be but it is expected to impact customers by July 2020.

"This wasn’t a decision we took lightly but we are committed to always do everything we can to buy locally and support Australian farmers," the Kellogg's spokesperson said.

The Bureau of Meteorology said NSW has had rainfall deficiencies since the start of 2017, and more than 97 percent of the state is now in drought.

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The Murray-Darling Basin has recorded it's driest ever 33-month period since 2017, as has the West Gippsland and East Gippsland districts in Victoria.

Between April and September 2019, NSW saw 55 percent less than the average rainfall of the past three years.

A cornfield in Griffith, that produces the corn sold to Kellogg's used for breakfast cereals. Image: Kellogg's

Kellogg's said that it would continue to support Australian farmers during the drought even with scarce crops and price increases.

"We will always do everything we can to buy locally and support Australian farmers – because, without them, Kellogg’s just isn’t Kellogg’s," it said.