FOOD prices are set to skyrocket and south-west people have been advised to start planting vegetables, breeding chickens and brewing beer at home.

The encouragement comes from permaculture co-originator David Holmgren, who yesterday spoke at the Urban Sustainable Living Expo at Deakin University.

Permaculture is a sustainable-living concept which has spread around the world since the 1970s and can be applied to food production, home and garden design and more broadly to construction, energy and alternative economic structures.

Mr Holmgren said being self-sufficient and sustainable at home was not only better for the environment, it was cheaper and would soon be necessary.

The concept had already begun to take root in the region as residents tried organic gardening at home, community garden concepts developed and increasing numbers of residents enrolled in permaculture courses.

Mr Holmgren said fertile south-west soils and the combination of a large population with plenty of space meant there was huge potential for permaculture to work well in the region.

``We have reached a point where the demand for oil outstrips the supply and governments haven't really planned for this,'' he said.

This represented a bigger threat than climate change, he said. ``Food supplies are dependent on fossil-fuelled transport and it is inevitable that food will soon be very expensive in relation to our incomes.''

At his Hepburn Springs home Mr Holmgren and his partner, Su, grow fruit and vegetables, nut trees and mustard seeds and breed goats, geese and chickens.

``We only really buy grains because they're so cheap, oil and some things like tahini and peanut butter,'' he said.

``We also do home brewing.

``When people ask me where they should start with permaculture, I often tell them home brewing is the most profitable thing they can do at home ... it's much more profitable than making jam.''