Vegetable prices: Growers warn spiralling costs threaten food security
The cost of producing vegetables has skyrocketed, yet farmgate prices have remained steady. Industry warns it is not sustainable.
Vegetable growers are worried spiralling farm input costs could threaten the viability of their businesses if farmgate prices don’t increase.
The peak body for horticulture producers has warned reduced availability and rising costs of fertiliser, fuel, chemicals and wood pallets could cripple the industry in the coming year.
Ausveg chief executive Michael Coote said the cost of production had broken records this year, yet retail prices had remained steady, squeezing producers who were also hit by state border closures, unseasonably wet weather and labour shortages.
“While all vegetable and potato businesses vary in terms of their production costs, vegetable growers’ businesses are facing between 25 and 40 per cent increase to their cost base,” he said.
“Growers are typically unable to pass on these increasing costs. Therefore, farmgate prices need to increase by at least 10 per cent to ensure the financial viability of vegetable and potato producers.”
Gippsland vegetable producer and Ausveg chair Bill Bulmer said securing adequate, affordable farm inputs was a huge concern for the industry.
“Food security across Australia is something that most Australians take for granted,” he said.
“People have to realise at the moment, especially in agriculture and horticulture, all our fertiliser requirements are imported. Most of our chemicals are imported. We don’t store any of our fuel anymore, most comes in on boats.
“There are multiple issues that need to be addressed.”
Mr Coote said keeping farmgate prices low could further threaten Australia’s food security.
“If prices received for product does not cover the increased production costs, growers will be forced to make difficult decisions within their business, including reducing production levels or deal with forecasted significant losses, both of which could have serious consequences for our industry and for Australia’s future food security,” he said.
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