Farming Association Reports That One-Third of Growers are Considering Exiting the Industry
AUSVEG has also acknowledged that the long term problems facing the farming sector are beyond the control of Coles and Woolworths.
According to a federal inquiry, over a third of vegetable producers are considering leaving the sector, which could make Australia a net importer of fresh food.
AUSVEG, the leading horticultural body in Australia, believes that supermarket retailers’ “manipulative and unconscionable” tactics are a key reason why vegetable producers are leaving the industry.
A recent survey showed that 37 percent of vegetable growers plan to exit the industry next year.
AUSVEG stated in a submission to the inquiry on supermarket prices that the prices being paid by retailers for Australian-grown vegetables are making it unviable for some farming businesses to continue operating.
The horticulture industry produces 93 percent of the total volume of food consumed in Australia, and 78 percent of retail fresh vegetables are sold through Coles, Woolworths, and Aldi, according to the Australian Bureau of Statistics.
The organisation believes that the relationship between growers and retailers is imbalanced, with retailers having the upper hand.
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Growers fear commercial retribution for raising issues with retailers or complaints mechanisms, according to AUSVEG.
Farmers Call on Supermarkets to Stop Treating Produce Like ‘Clickbait’
AUSVEG General Manager Public Affairs, Lucy Gregg, highlighted that retailers devalue fresh produce by using it as bait to lure customers, with examples like selling broccoli at a lower price than the cost to farmers.
She urged retailers to treat fresh produce with care and not as a tool to attract customers.
To address these issues, AUSVEG suggested implementing a “code of behaviour” to regulate promotions and ensure retailers act responsibly towards the fresh produce sector.
While supermarket prices are a focus, some argue that the problem is more complex.
Graham Young from the Australian Institute of Progress stated that supermarket profits are minimal and cannot sustain significant price reductions without risking business viability.
Australia must address challenges such as energy imports, workforce issues, and demographic changes to ensure a sustainable food supply.
