Tasmanian farmers just want a fair price for their work from outlets
Local farmers fear Tasmania’s food security is at risk as supermarkets and processors squeeze producers with unsustainable farmgate prices.
Tasmanian farmers say Australia risks becoming a “dumping ground” for cheap, lower-quality imports as local producers struggle to stay afloat amid rising costs and supermarket pressure.
Their warning was delivered during talks on Monday between Nationals leader David Littleproud and a group of Tasmanian producers in Longford, who say the squeeze on farmgate prices is now threatening the state’s long-term food security.
TasFarmers chief executive Nathan Calman said growers across the state were being backed into a corner by retailers and processors who dictate prices with little room for negotiation.
He said the industry’s “biggest challenge” remained “receiving fair pay for the food they produce.”
“Producers constantly feel under pressure in Tasmania from the supermarkets, the processing supplies they provide produce to, to take price and at the end of the day it’s leading to a point where we’re going to face a food security crisis in this country,” Mr Calman said.
Rising costs for fuel, fertiliser and energy have eaten into already slim margins, with many producers saying returns have never been tighter.
“We know during recent negotiations, a five dollar large serve of French fries would only see 11 cents return to a grower,” he said.
“Somewhere in the middle, we know the processes and outlets are definitely having the large serve of what’s being passed back to consumers.”
While Tasmanians continue to battle supermarket bills, recent Foodbank Australia data shows more households are now skipping meals. Mr Calman said choosing local produce wherever possible was one of the few ways consumers could help prevent “produce dumping” and keep Tasmanian farms viable.
“Consumers need to know where their food comes from and the standards that exist if they’re choosing to buy food from international markets,” he said. “We know that produce produced here in Tasmania is the best in the world.”
He said governments had a responsibility to “make sure” producers could afford to remain on the land.
“They can’t run at a loss and take on more risk year on year for no reward,” he said.
“It only takes one dry season at the moment and a producer can be put to the wall. We need to make they can negotiate with confidence with their supply chain partner and extract a fair wage for what they do.”
Concerns raised during the meeting also focused on the quality of overseas produce and the environmental cost of transporting food long distances. Farmers say locally grown fruit and vegetables are being priced out by cheaper imports, forcing Tasmanian producers to match prices or risk losing long-standing contracts.
Nationals leader David Littleproud accused major supermarkets of “destroying this country’s food security.”
“The way they’re dealing with Australian farmers is unconscionable,” he said.
Mr Littleproud urged the federal government to enforce its new competition rules and strengthen the code of conduct for large retailers.
“This where government does need to intervene in a marketplace, when there is too much market power and you are seeing producers being shoved out,” he said.
“Anthony Albanese is too scared to take on the supermarkets.”
He also criticised Franklin MP and Federal Agriculture Minister Julie Collins, saying her party needed to “get their hands dirty” and engage more directly with producers.
Ms Collins rejected the claims, saying Labor was delivering reforms aimed at improving fairness for farmers.
“We made the Food and Grocery Code mandatory from 1 April 2025 and have announced we will soon consult on extending unfair trading practices to small businesses,” she said.
“The Albanese Labor Government understands the critical importance of Tasmania’s farmers and the world-class produce they are growing.”
Ms Collins, who was at the Huon Show on Saturday, said the government was “listening to and working hand-in-hand with farmers and producers” as it builds a new National Food Security Strategy, “Feeding Australia,” to strengthen the country’s food system.
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