AUSVEG’s advocacy efforts on behalf of the vegetable, potato and onion growers we represent have ratcheted up this year as a cost-of-production crisis and lack of profitability have led to many questioning their future in the industry.

As persistent challenging economic conditions and successive AUSVEG Industry Sentiment Surveys have reflected, growers around the country are straining under the weight of that cost-of-production crisis, in addition to severe compliance burden, poor farmgate returns, a lack of funds to invest and innovate, workforce shortages and declining consumer engagement.

The scale and the scope of the many specific challenges confronting Australia’s vegetable industry have galvanised our determination to ensure the growers we represent are receiving maximum value and results from our significant advocacy efforts on behalf of the industry.

Within this context, AUSVEG last week notified the National Farmers Federation of our Board’s decision not to renew our membership of the NFF Horticulture Council.

AUSVEG’s Board – which is made up of vegetable, potato and onion growers from across the country – reached the decision during the routine annual assessment of our numerous industry affiliations and memberships, and the ongoing consideration of our strategic direction and priorities.

This development allows us to more efficiently conduct our core function of advocating in the direct interests of the vegetable, potato and onion growers we represent, and allocate the required level of resources to achieving results for our industry.

The decision also gives AUSVEG greater oversight of the commitments we seek from Government on behalf of Australia’s vegetable, potato and onion growers, and how we go about achieving these.

AUSVEG remains committed to engagement with a range of industry partners and organisations, and will continue to collaborate across the horticulture and broader agriculture sector on issues of common interest.

AUSVEG is more determined than ever to ensure our advocacy on the core issues confronting the vegetable, potato and onion growers we represent delivers maximum value and results.

Evidence of this can be seen in our significant advocacy efforts throughout 2024, which have seen AUSVEG representatives regularly visiting Canberra, providing submissions on behalf of growers, meeting with key Ministers and decision makers, and appearing before numerous inquiries.

A summary of some of 2024’s key advocacy activities is included below.

Supermarket Inquiries

Amid a cost-of-living crisis for consumers and cost-of-production crisis for Australian growers, 2024 has seen major political and public attention cast on the practices of the big supermarkets.

With Australian vegetable potato and onion growers continuing to identify poor farm gate returns as one of the key factors in their considerations to leave the industry, AUSVEG has continued to push for measures that have the largest positive material impact on growers’ bottom lines.

This has included through a multitude of submissions, consultations and engagements with, and appearances before the many supermarket inquiries of 2024 – from the Senate Select Committee Inquiry into Supermarket Prices, the Emerson Review of the Food and Grocery Code of Conduct and the ongoing ACCC Inquiry into Supermarkets.

Throughout these inquiries, AUSVEG has continued to call for a range of measures to improve the bargaining position of growers in their business dealings with the big supermarkets, including making the Food and Grocery Code mandatory and stronger.

With both Labor and the Coalition having now committed to a stronger, mandatory Code, AUSVEG remains engaged with the process of developing that updated Code, to ensure the many supermarket inquiries of 2024 result in outcomes that actually make a positive difference to growers.

A key component of this, as outlined in AUSVEG’S 2025 election priorities (see below) is ensuring that there is scope to efficiently update the new Code based on any relevant findings from the ACCC inquiry, and that resourcing is allocated to inform and educate growers about how they can best utilise the new Code.

2024 Industry Sentiment Report

Flowing from our regular Industry Sentiment Surveys, AUSVEG in September released its 2024 Industry Sentiment Report, informed directly by the views and experiences of Australia’s vegetable, potato, and onion growers.

This report was a key component of AUSVEG’s efforts to measure and address the key issues facing growers in Australia’s vegetable industry.

While it has been widely understood that business conditions in the sector have been challenging for some time, the report provided a quantifiable, cumulative snapshot of sentiment among growers nationally.

Concerningly, the report affirmed that Australian vegetable growers are continuing to question their economic viability with more than a year’s worth of low or negative margins continuing to bite, and leaving 34 per cent of grower respondents considering walking away from the sector.

Key challenges were identified across a range of issues from business costs and profitability, to workforce to industrial relations to compliance and regulatory burden.

However, the insights gathered have also added invaluable weight to AUSVEG’s advocacy efforts on behalf of industry, to improve the profitability and sustainability of Australian vegetable growing businesses.

With the report’s findings having been widely circulated, discussed and well-received during AUSVEG’s regular engagements with politicians and key decision-makers in Canberra, and around the country, it has also been a key component informing development of AUSVEG’s 2025 Federal Election Priorities.

With a Federal election due to be called any day now, AUSVEG is also planning further surveys of growers in early 2025, to inform our ongoing advocacy. Given the invaluable role survey results have played in enhancing AUSVEG’s advocacy, we encourage all growers to engage with and participate in the next iteration.

2025 Federal Election Priorities

On National Ag Day, 15 November 2024, AUSVEG became the first major national Agriculture body to release its 2025 Federal Election Priorities.

This document is the result of extensive consultation with AUSVEG State Member farming associations and growers around the country – including through our industry sentiment surveys – and outlines the key commitments needed to address the cost-of-production crisis and rock-bottom sentiment threatening Australia’s vegetable growers and food security.

As we know from the 2024 AUSVEG Industry Sentiment Report, major concerns over farm viability are leading to over one third of growers considering walking away from the vegetable industry in the next year. AUSVEG continues to advocate for urgent action to secure the sector’s economic viability, and Australia’s supply of fresh, quality vegetables.

AUSVEG’s Federal Election Priorities document outlines 21 specific commitments needed from all parties contesting the next Federal election, under the pillars of Secure supply, Skills and workforce stability, Structural supports for business, and Sustainable future.

A commitment to a national campaign to boost vegetable consumption, alongside initiatives to shore-up national food security, address major skills and workforce shortages and promote business investment and opportunities are among the key priorities.

AUSVEG has already engaged with key politicians and decision-makers in Canberra to discuss our 2025 election priorities, which have been well received.

In the leadup to the Federal election, we are continuing to engage with all political parties, as we reinforce that the viability of Australia’s vegetable industry is under threat, and that firm commitments are needed now to secure its future.

Workforce

Workforce challenges and shortages have remained another major challenge for Australian vegetable growers. In the 2024 Industry Sentiment report, 46 percent of growers indicated they were experiencing workforce shortages. Labour costs also averaged 38 percent of a grower’s overall cost of production, and reached as high as high 71 percent.

Significant changes to employment schemes heavily relied on by growers have also contributed to ongoing challenges sourcing workers for Australian vegetable growing businesses.

In light of prevailing workforce shortages and challenges facing Australian vegetable growers, AUSVEG has maintained its advocacy to Government on the key issues.

Within our Federal Election Priorities, we have called for a suite of fit-for-purpose workforce solutions to make it easier for growers to access the workers they need, when and where they are needed.

This has included seeking a review and streamlining of the PALM scheme and the Horticulture Industry Labour Agreement, as well as a range of new and adjusted visa solutions and options.

AUSVEG has also once again called for the establishment of a national labour hire licensing scheme.

While there is still some way to go to achieving the workforce solutions growers need, the Government holding off on more changes to the PALM scheme, and, at least for now, the removal of the 88-day regional work requirement for working holiday maker visas, are evidence of some progress.

These may be short of the widescale changes most growers want and need, however, they likely wouldn’t have happened – and the situation could have been much worse – if not for advocacy from groups like AUSVEG.

Into 2025

While the above provides a summary of some of AUSVEG’s key advocacy activities and outcomes from 2024, it is far from an exhaustive list.

As part of our ongoing commitment to ensuring the key issues confronting the growers we represent are understood and acted upon, we have also maintained our strong record of engagement with inquiries, politicians, ministerial and department staff and regulators across the workplace relations, trade, home affairs, competition, immigration, farm chemistry domains, among others.

With a Federal election to be held in early 2025, AUSVEG, as the peak industry body for Australia’s vegetable, potato and onion growers, has primed its position as the lead advocate on the many distinct issues and challenges facing our industry.

Thank you to all growers for your ongoing engagement with AUSVEG and our advocacy efforts during 2024.

We look forward to achieving more on your behalf leading into the Federal election, and further into the new year.

For more information, contact AUSVEG General Manager Public Affairs and Communications Lucy Gregg at lucy.gregg@ausveg.com.au, or 03 9882 0277.