Australian vegetable growers are reducing plantings and opting not to harvest existing crops as surges in the costs of critical farm inputs and supply uncertainty threaten Australian families’ access to domestically grown fresh vegetables.

The findings from a snap AUSVEG survey of over 150 growers and counting in the last 48 hours highlight 27 percent have reduced or stopped planting schedules due to severe operating uncertainty flowing from the Middle East conflict, and a further 13 percent are considering their options. Growers opting to reduce planting have done so by an average of 30 percent, while 19 percent had decided not to harvest existing crops due to unviable returns based on production and distribution cost increases, or in some cases inability to access logistics to deliver produce to towns and cities across the country.

“Australia relies on its vegetable industry to supply 10,000 tonnes of fresh produce to consumers each day, and Australian growers are responsible for supplying 98 percent of the fresh vegetables consumed by Australian families. The Australian vegetable industry is crucial for the health and wellbeing of all Australians and national food security.” said AUSVEG CEO Michael Coote.

“Australian vegetable growers operate 52 weeks a year and make weekly decisions about how much to plant and what volumes to harvest. As growers scale back production, the flow-on to consumers will start to be felt immediately as supply of Australian grown vegetables reduces. It is critically important that all Australians understand the urgency of addressing the severe challenges that vegetable growers feeding Australian families are currently facing.”

Since the beginning of the conflict, Australian vegetable growers have experienced major and ongoing increases in the cost of key farm inputs like diesel, fertiliser and freight, with significant shortages also reported. Supply chain impacts also include major cost increases for other key inputs and services growers rely on to deliver their produce to market.

“Conversations and reports from growers around Australia have revealed localised impacts are being felt differently in different growing regions. Accessibility of inputs, production costs, and uncertainties around future production scenarios are playing through differently across the country. While some may choose not to harvest due to a lack of freight to get to market, others may not be planting because of a lack of diesel to run machinery. The latest data collected through this week’s survey validates the localised accounts we have been getting from growers, and contributes to a stark national picture,” said Mr Coote.

The key findings from this week’s survey of growers include:

• Over 75 percent of growers are experiencing critical fuel shortages, with 17 percent only having enough diesel to last a week or less, 36 percent only have enough for two weeks, and 29 percent only have enough to last three weeks. (Note: holding three weeks of fuel is a standard industry practice to ensure production continuity.)
• Growers are reporting average increases to their weekly fuel costs of 74 percent.
• Growers report freight surcharges have increased by an average of 38 percent.
• Over 50 percent of growers reported fertiliser shortages, with 6 percent only having enough to last a week or less, almost 20 percent only having enough for two weeks, and 25 percent only having enough for another three weeks.
• In addition to the major issues over supply and cost of fuel, freight, fertiliser and packaging, growers have also raised concerns over price increases and availability of other key inputs like crop protection products, crop nutrients, irrigation pipes and fittings, and seed supplies.

Despite the significant surges in production costs, growers reported they had only been able to pass an average of 12 percent of their recent cost rises on to their customers, raising further serious questions over industry viability and sustainability.

“Australian vegetable growers have no capacity to absorb these latest extreme cost increases after years rising costs and falling returns, resulting in two in five growers telling AUSVEG they were looking to leave the industry, even before the impacts of the conflict,” said Mr Coote.

“With no certainty on costs, input supply and returns, growers continue to face the challenge of not knowing what conditions they’ll be dealing with in any number of weeks’ time, when crops planted today are ready to be harvested for market.

“Margins are already tight enough and it can be just too expensive to plant a crop when you don’t even know if you’ll be able to harvest it, get it to market and get paid enough for it.

“It is fundamental that vegetable growers receive viable farmgate prices for their produce to allow them to keep growing and supplying the vegetables Australians expect, and this needs to be front of mind for all commercial fresh produce buyers and retailers.

“The vegetable industry also needs to be recognised as an essential sector of critical importance as part a coordinated national response led by government. Because unless government can commit and assure growers they will be prioritised for supply of diesel, fertiliser and freight, more will review their production schedules, and supply will drop further.”

Key priorities must include:

• Fresh vegetable producers must be considered as a priority sector for any government-directed fuel allocations.
• National efforts are required to ensure enough fertiliser is being secured, brought into the country and stockpiled, with vegetable grower access prioritised.
• Immediate planning is required to prepare for any future need for fuel or fertiliser rationing. If future rationing is deemed necessary to protect food production, it is essential systems, plans and mechanisms are in place to ensure supplies are directed to vegetable growers.
• The criticality of freight and refrigerated transport must be addressed in national planning, with vegetable grower access prioritised.
• The National Food Supply Chain Assessment announced this week must consider both on-farm and flow-on impacts of all supply chain weaknesses or shortages impacting vegetable growers.
• Delay or pause the implementation or reporting of non-critical compliance and regulation.
• Delay the implementation of any export cost recovery fees and charges.