New official figures show the average per kilo farmgate value of Australian vegetables in 2025 stayed below 2022/23 levels, as Australian vegetable growing businesses remain under cost and pricing pressure.

The latest Horticulture Statistics Handbook released today by Hort Innovation shows Australia’s 2024/25 overall vegetable production declined slightly to 3.78 million tonnes, from 3.83 million tonnes the previous year, while overall production value increased from $5.7 billion to $6 billion.

Far from signalling a reversal of recent cost, pricing and operating challenges that have left many vegetable growers considering their future viability, significant pressure points remain.

With the majority of the overall production value increase attributable to climbs in the production value of major crops like potatoes, tomatoes and onions, linked to corresponding drops in supply, these changes reflect challenging growing conditions for many staple commodities over the period.

Despite the overall increase in production value, the average per kilo value across all vegetables, at $1.59/kg, was 2.5 percent lower than 2022/23’s average of $1.63 – representing only a partial recovery from 2023/24’s significant drop to $1.49/kg. With CPI having climbed a cumulative 5.9 percent over the 2023/24 and 2024/25 financial years, average per kilo farmgate value is down over 8 percent in real terms compared to two years ago.

The new official figures come as AUSVEG Industry Sentiment Surveys continue to show that unviable returns for produce are an increasingly pressing issue leading two in five vegetable growers to consider leaving the industry.

The breadth and diversity of crops grown across Australia’s vegetable industry means trends were not universal across all commodities. The handbook shows broccoli, cabbage, leafy vegetables and chilli production volume and value remained relatively stable compared to the previous year. However, larger moves were recorded across other commodities, also reflective of the pressures facing growers.

While a 2024/25 decline in onion production volume saw production value climb from $290 million to $306 million, this was still short of the $332 million recorded in 2022/23. Onions’ $1.21/kg average farmgate value in 2024/25 also fell short of the $1.30/kg average recorded in 2022/23.

Similarly, a $40 million increase in tomato production value, linked to a drop in supply still saw the average value of $1.48/kg, sit well below the recent high of $1.77/kg recorded in 2022/23, and just two cents above the average of $1.46/kg recorded in 2021/22.

Despite increases in both production value and volume, carrots, peas and cucumbers also all recorded average per kilo prices below 2022/23 levels.

AUSVEG CEO Michael Coote said: “The economic and operating pressures on Australian vegetable growers have been substantial in recent years, and unviable returns for produce are continually and increasingly identified as a top reason two in five growers are considering leaving the industry.

“With average farmgate value down in real terms, and costs of key farm inputs like energy and labour, in particular, having grown substantially in recent years, it is clear that Australian vegetable growers continue to face challenges.

“It is important to understand that an increase in the overall production value of vegetables does not automatically translate to higher returns for growers, particularly as production costs have continued to climb.

“It is critical to ensure Australian growers are receiving fair and viable prices for their produce, and just as important to ensure there are opportunities for vegetable growing businesses to access and adopt productivity and profitability enhancing innovations and initiatives.

“In light of the severe and continuing viability and profitability challenges facing Australian vegetable growers, the significant and ongoing program of research and development work funded through grower levies, and overseen by Hort Innovation, is particularly important to achieving those productivity enhancements.”

The Horticulture Statistics Handbook, released by Hort Innovation each year, offers the most comprehensive and up-to-date annual data available on Australian horticultural production.

The Horticulture Statistics handbook is funded by Hort Innovation using multi-industry research and development levies and funds from the Australian Government (Project Code MT24019). The latest Handbook is available here.