Fruit and veggie prices are up – and staying up for months, new report warns

The price you’re paying for fruit and vegetables is going up and is unlikely to drop for quite some time. Here’s what is going on.

Fruit and vegetable prices on supermarket shelves rose five per in June and are staying higher as backpacker workers continue to leave the country and farmers continue to struggle to find willing labourers.

A new agriculture report out on Tuesday reveals the ongoing shortage of fruit pickers has put up retail prices, which are likely to stay high into the middle of next year.

Bananas, broccoli and tomatoes are among the fresh produce seeing rising prices, despite good weather conditions creating a bumper season.

Fruit and vegetable prices, including bananas, have risen and are staying up. Picture: Matt Harris

But a plan to be announced today to streamline the Pacific Island worker visa scheme could help address the pricing problem.

The ABARES’s agricultural commodities September report found retail fruit and vegetable prices rose about five per cent in June “due to a shortage of pickers, extreme rainfall on the east coast of Australia and Cyclone Niran affecting banana crop yields”.

“Most retail fruit and vegetables are expected to be similarly priced compared to 2020–21,” the report found.

“Ongoing labour shortages along the supply chain are expected to contribute to higher supply costs and largely offset price falls typically seen during times of favourable seasonal conditions.”

Agriculture Minister David Littleproud said the government was doing all it could to address the worker shortfall.

“We have listened to concerns about labour shortages and we are progressing the Agricultural Visa to make sure that we can get the fruit picked and the veggies out of the ground,” he said.

Agriculture Minister David Littleproud praised agriculture for its forecast record $73 billion year in production. Picture: NCA NewsWire / Gary Ramage

Minister for the Pacific Zed Seselja will today announce changes to cut down red tape for farmers who need to hire from the Pacific workforce.

It includes opening up the Pacific Labour Scheme to employers in more areas across regional Australia; doubling recruitment caps for certain employers with good records; and enabling the hotel and resort industry in rural and regional areas to hire Pacific labour during peak tourism season.

“Given the very low Covid risk posed by many Pacific nations, there is a huge untapped opportunity for Australian employers to recruit workers from the region and we are committed to helping them do so,” Senator Seselja said.

“More than 10,600 workers have arrived in regional Australia since the programs restarted in September last year.”

Mr Littleproud said agricultural production in Australia was forecast to top $73 billion this year, an eight per cent increase on last year’s record haul.

“This is remarkable in unprecedented economic times, and plenty of industries in Australia haven’t seen that kind of growth,” Mr Littleproud said.