Most of the fruit crops in the Goulburn Valley region of Victoria which have been devastated by a severe frost aren’t insured. Experts say the losses will be as high as $500 million.

The frost occurred on Sunday night when temperatures dropped to minus 5 degrees. Initial estimates suggest farmers alone will lose as much as $80 million, while pickers and canners will lose even more.

Fruit Growers Victoria Chairman Mark Paganoni told Sunrise Exchange News the majority of the crops are uninsured. “I’d be surprised if more than a few have insurance for frost. Many of them do have cover for hail, but not frost,” he said.

Mr Paganoni says it is a “true natural disaster” and hopes the Victorian Government will declare the region a natural disaster zone.

Many local producers are also fearful the prices will be driven up for fruit.

While the hardest-hit crop – apricots – will be affected, Mr Paganoni says because other fruits like peaches, nectarines, plums and apples are grown in other areas of Australia, fruit prices will not reach the same heights that bananas have after Cyclone Larry.

The region has already been hit hard by the drought and many fruit growers have been forced to pull out trees as water is increasingly scarce.