Bread, tomatoes and dairy products could all go up in price because of the flooding in Queensland.
The floods are thought to have cost the Australian agriculture sector about $1 billion.
Most of Queensland's grain crop has been destroyed which and Federated Farmers spokesperson Philip York says will push up the cost of bread in New Zealand, much of which is made from Australian wheat.
He says the grain shortage could also lead to higher international dairy prices, because overseas farmers use grain for feed.
Mr York says a rise would be good for exporters but bad for consumers because New Zealand buys products at world prices.
And he says damage to the Australian tomato crop will mean higher prices in winter.