An average of 32 per cent of growers across industry group AUSVEG’s sentiment surveys since 2023 said they thought about leaving, while another third said they would exit if offered a fair price for their farm.
“We talk to large, medium and small vegetable growers around the country every day — and for many the relentless pressure is proving too much,” AUSVEG chief executive Michael Coote said.
Nearly half of respondents said they were financially worse-off than a year ago.
The situation is taking a major financial, personal and health toll on producers, and would have serious consequences for Australia’s food security, Mr Coote said.
“Losing vegetable growers at anywhere near the scale indicated by our surveys has catastrophic implications for future vegetable supply,” he said.
“It would cause consumer prices to increase and threaten our food security in the longer term.’
Australian growers currently produced 98 per cent of fresh vegetables consumed nationally, according to the industry group.
AUSVEG is calling for initiatives to shore up national food security, secure sovereign manufacturing, ease worker shortages and for a $125 million, five-year commitment to increase vegetable consumption.
Federal Nationals leader David Littleproud said it was clear growers weren’t getting the support they needed.
“Unfortunately, the industry is going backwards because Labor has treated our farmers with contempt and ignored the Coalition’s calls for supermarket reform as far back as 2022,” Mr Littleproud said.
“The Coalition’s plan will create a Supermarket Commissioner, to act as a confidential avenue for farmers and suppliers to address the fear of retribution.
“This will be a game-changer for farmers and suppliers because it will change culture and protect those who need it most.
“We will also introduce sector-specific divestiture powers — in the hands of the ACCC and the courts, not politicians — as a last resort to address the behaviour of supermarkets and to put an end to instances of price-gouging.”
The Federal Government announced an inquiry into Australia’s supermarket sector in January of 2024, and the resulting code of conduct is set to come into effect on April 1.
Federal Agriculture Minister Julie Collins said the code aimed to protect farmers and everyday Australians at the supermarket checkout.
“This will protect suppliers and farmers and improve supermarket conduct with heavy penalties for breaches of the code,” Ms Collins said.
“The mandatory code will address imbalances in bargaining power between large grocery retailers or wholesalers and their suppliers and includes new obligations to protect suppliers from retribution and strengthened dispute resolution mechanisms for suppliers.”
The code will also establish an anonymous supplier and whistleblower complaints process via consumer watchdog the Australian Competition and Consumer Commission, which led the 2024 inquiry into the supermarket sector.
Mr Littleproud said the AUSVEG survey comes on top of the recent Jobs and Skills Australia report, which also shows the agricultural industry remains in limbo.
“The Pacific Australia Labour Mobility (PALM) scheme has become unviable for employers due to the cost and unworkable requirements,” he said.
“The number of PALM workers in agriculture has now fallen by 25 per cent, or more than 5700 jobs.
“There is also uncertainty around the minimum 30-hour settings. Businesses are making decisions now about engaging PALM workers without knowing what their conditions will be after July 1.”
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