Growers Seek Greener Pastures as Food Supply Faces Risk

Approximately one out of every three vegetable growers are contemplating leaving due to increasing production costs and low farmgate prices.

An average of 32 percent of growers surveyed by industry group AUSVEG since 2023 reported considering an exit, while another third stated they would leave if offered a fair price for their farm.

According to AUSVEG chief executive Michael Coote, “We speak with vegetable growers of all sizes across the country daily—and for many, the constant pressure is becoming too much.”

Nearly half of the respondents mentioned that they were financially worse off compared to a year ago.

The situation is having a significant financial, personal, and health impact on producers and could have severe repercussions on Australia’s food security, Coote added.

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“This would lead to an increase in consumer prices and jeopardize our long-term food security,” he warned.

Australian growers currently supply 98 percent of the fresh vegetables consumed nationally, according to the industry group.

AUSVEG is advocating for measures to bolster national food security, ensure domestic manufacturing, address labor shortages, and a $125 million (US$79.4 million) commitment over five years to boost vegetable consumption.

Nationals leader David Littleproud acknowledged the lack of support for growers, stating, “Unfortunately, the industry is regressing due to Labor’s disregard for our farmers and the coalition’s pleas for supermarket reform since 2022.”

The Albanese Labor government initiated an inquiry into Australia’s supermarket sector in January 2024, with the resulting code of conduct scheduled to take effect on April 1, 2025.

Agriculture Minister Julie Collins emphasized that the code aims to protect farmers and consumers at supermarkets with stringent penalties for breaches.

“The mandatory code will address power imbalances between major grocery retailers and suppliers, introducing new obligations to shield suppliers and improved dispute resolution mechanisms,” Collins explained.

Additionally, the code will establish an anonymous complaints process for suppliers via the Australian Competition and Consumer Commission, which led the 2024 inquiry into the supermarket sector.