Struggling vegetable growers consider walking away from their farms

Vegetable growers are considering leaving the farm because of onerous red tape, workforce shortages and low margins.

AUSVEG chief executive Michael Coote.

Nearly a third of Australian vegetable growers are considering walking away from their farms as onerous red tape, high input costs and low margins eat away at their economic viability.

The poor morale among vegetable farmers was revealed in a survey by peak industry group AUSVEG that found 34 per cent of growers were considering leaving the sector, which contributes $5.8bn in annual farmgate value.

They identified rising input costs, poor farmgate returns, workforce shortages, industrial relations changes, lack of funds to invest in innovation, and an overwhelming compliance burden as reasons for reconsidering their future.

Half of those surveyed said they were financially worse off than last year.

AUSVEG chief executive Michael Coote said government policies were contributing to the low grower sentiment.

“While the economic challenges and uncertainty which have hit the wider Australian community have played a role in the difficulties facing commercial vegetable growers, many of the issues contributing to this crisis … are the result of legislative, regulatory and policy settings … imposed upon the industry,” Mr Coote said. “Our industry is in an extremely tenuous position, with growers leaving, considering leaving, or just one more setback away from leaving.

“With more than a third of respondents continuing to consider leaving the sector, it is clear that growers have, and will continue exiting until the situation improves. Without that meaningful improvement, there are serious implications for the viability of Australia’s vegetable industry, as well as our longer-term food security.”

Mr Coote said governments could also offer solutions to the challenges facing growers, including by recognising the varied workforce options needed in the sector.

Among key concerns was the prospect of removal of the requirement for backpackers seeking a second year of their visa to work for 88 days in a regional area. The federal government is considering scrapping the 88-day requirement under its migration review, which 62 per cent of growers surveyed said would have a severe or critical impact on their business.

Victorian Labor senator Raff Ciccone, who co-chairs the Parliamentary Friends of Fresh Produce, said the AUSVEG report was concerning, and he encouraged consumers to eat more vegetables.

“Growers of fresh produce have always been significant contributors to the success of Australian agriculture, benefiting our national economy by over $12bn each year,” he said.

“Choosing to eat more vegetables, and choosing to eat Australian, supports local jobs, drives our economy and ensures our country maintains its high standards of fresh produce.”

Nationals leader David Littleproud said the worsening outlook was driven by the Albanese government’s changes to the Pacific Australia Labour Mobility visa scheme for agricultural workers and potential changes to backpacker visas.

“Every single Australian would be impacted by a mass farmer exodus, as operating challenges threaten the viability of growers, risking an increase in prices at the checkout,” Mr Littleproud said.