New data released today in the Horticulture Statistics Handbook shows a $140 million drop in the overall farmgate value of vegetables produced in Australia during 2023-24, despite an increase in overall production – affirming the severe price pressures contributing to a third of Australian vegetable growers considering leaving the industry in the next year.

The latest official statics reveal Australian growers produced an overall 3.83 million tonnes of vegetables in 2023-24, compared to 3.58 million tonnes the previous year, while overall production value dropped to $5.7 billion from $5.84 billion.

The drop in farmgate value means Australian growers overall earned 8 percent less per kilo of vegetables than the previous year, compounded further by a 3.8 increase in CPI over the same period. In real terms, that equates to a 12 percent drop in farmgate returns for vegetable growers.

The Australian Horticulture Statistics Handbook, released by Hort Innovation each year, offers the most comprehensive and up-to-date annual data available on more than 75 horticultural products including fruit, nuts, vegetables, nursery, turf, and cut flowers. AUSVEG CEO Michael Coote said the handbook continues to provide growers and industry with an important picture of macro and micro insights and themes in the Australian horticulture industry.

“This latest data reflects the experiences of the vegetable growers we speak to each day, who are continuing to face major challenges with a cost-of-production crisis and struggles securing prices that not only cover their costs but allow them to stay viable by turning a profit,” said Mr Coote.

“With the handbook again confirming that Australian growers are supplying more than 98 percent of the fresh vegetables bought and consumed nationally each year, this is another reminder of how critical our sector is to national food security, and the health of all Australians.

“It is just as critical to ensure that growers have the capacity and opportunity to continue accessing the latest farm productivity and profitability enhancing innovations and breakthroughs – which is why the ongoing program of research and development work funded through grower levies and overseen by Hort Innovation is particularly important in the current business environment.”

Reflecting the diversity of crops produced in the Australian vegetable industry, trends were not universal across all commodities. While production volumes of most vegetable crops recovered in 2023-24 following challenging climatic conditions the previous year, some crops experienced production drops, such as carrots, cabbages, leeks, sweet potatoes and zucchini. Peas experienced a significant drop of 23 percent.

Notable volume growth was seen in beans, ginger, head lettuce and cucumbers with growth of 12-14 percent.

As the largest crop group in the Australian vegetable industry, potatoes recorded a 5 percent increase in production volume to 1.5 million tonnes, and a 7 percent increase in production value to $1.1 billion. Onion production volume grew 7 percent to 272,000 tonnes, but production value fell 13 percent to $290 million.

Hort Innovation CEO Brett Fifield said the Australian Horticulture Statistics Handbook was an important resource for growers and other members of the industry. “Hort Innovation produces the handbook each year to give industry members the data and insights they need to guide their decision-making.

“This year’s data shows total horticulture production volume increasing by 6.6 percent to 6.89 million tonnes, which represents a significant bounce back after a challenging season for many categories the year prior. It also demonstrates the resilience and capabilities of Australian growers.

“The total value of Australian horticulture production rose 4.3 percent to $17 billion, reflecting the crucial role horticulture plays in feeding the nation and the Australian economy.”

Access the 2023/24 Hort Stats Handbook here.

About AUSVEG

AUSVEG is the peak industry body for the Australian vegetable, potato & onion sectors, representing over 3,600 growing businesses that employ tens of thousands of workers and produce over 3.8 million tonnes of produce, with a farmgate value of $5.7 billion.

About Hort Innovation

Hort Innovation is the grower-owned, not-for-profit research and development corporation for Australia’s horticulture industry. Its role is to advance Australia’s $17 billion horticulture industry by investing in research and development, marketing and trade to build a prosperous and sustainable future for growers.

About the Australian Horticulture Statistics Handbook

This project has been funded by Hort Innovation using multi-industry research and development levies and funds from the Australian Government under project code MT21006. More information is available here.

ENDS

MEDIA CONTACT: Andrew MacDonald, National Communications Manager, AUSVEG
Phone: 03 9882 0277, Mobile: 0406 836 330, Email: andrew.macdonald@ausveg.com.au