An ongoing cost-of-production crisis and lack of farm profitability has again led to a third of vegetable growers considering leaving the industry within the next year – with more still indicating they would do the same if offered a fair price to sell their farm.

The concerning findings were recorded in the latest AUSVEG Industry Sentiment Survey, conducted each six months since 2023, by the peak body for Australia’s $5.8 billion vegetable, potato and onion industry.

The results of the survey, which was open from December 2024 to February 2025, have again raised major questions about the future supply of Australian-grown fresh vegetables, affirming worrying indicators that should ring alarm bells ahead of a Federal election that will be firmly focused on the cost of living.

These include:

• An average of 32 percent of growers across all sentiment surveys since 2023 considering leaving the industry.
• An additional third of growers in the most recent survey not currently considering leaving would change that position if they were offered a fair price to sell their farm – meaning two thirds of growers surveyed would stop growing vegetables if the right exit strategy arose.
• Almost 50 percent of growers were again financially worse-off than a year ago.
• Almost 40 percent of growers expected to be financially worse-off in another year’s time, compared to 28 percent in the middle of 2024.
• Growers are continuing to delay or reduce investing in capital infrastructure improvements (81%), innovation and productivity improvements (56%) and maintenance of assets (46%).

In a continuation of the trend from previous sentiment surveys, rising input costs, poor farmgate returns, workforce shortages, industrial relations changes, lack of funds to invest in innovation, and an overwhelming compliance burden have again been identified as the key factors leading growers to reconsider their futures.

The protracted toll of the dire business environment on growers also saw mental health and wellbeing concerns feature prominently in considerations to leave the industry in the most recent survey.

“With one third of Australian vegetable growers continuing to tell us they are thinking about closing up shop, selling the farm or switching to other agricultural pursuits – and more still saying they would consider it if someone made a genuine offer for their business – the current inhospitable business environment is clearly taking a major financial, personal and health toll,” said AUSVEG CEO Michael Coote.

“We talk to large, medium and small vegetable growers around the country every day – and for many, the relentless pressure is proving too much. We know some vegetable growers have already left the industry – and others will follow unless business conditions improve. For others, it has only been the lack of viable alternatives that has kept them producing vegetables. For those remaining, anecdotally we know that many are reducing vegetable production capacity and diversifying into alternative income streams.

“Losing vegetable growers at anywhere near the scale indicated by our surveys has catastrophic implications for future vegetable supply – it would cause consumer prices to increase, and threaten our food security in the longer term.

“As a country we need to consider how important it is to have a reliable supply of domestically-grown fresh vegetables, because failing to act on these threats to our national vegetable industry will have major and far-reaching consequences.”

AUSVEG last November launched its 2025 Federal election priorities which outlines 21 specific commitments needed from all parties contesting the next election, under the pillars of Secure supply, Skills and workforce stability, Structural supports for business, and Sustainable future.

Initiatives to shore-up national food security, secure sovereign manufacturing capability for key farm inputs, address major skills and workforce shortages and promote business investment and opportunities are among the key priorities.

Additionally, AUSVEG is calling for a bi-partisan, $125 million, five-year commitment to increase woefully low vegetable national vegetable consumption.

“With Australian growers currently producing 98 percent of the fresh vegetables consumed in this country, the election commitments we are seeking are critical to preventing an exodus from the industry, and negative flow-on impacts for consumer prices and food security,” said Mr Coote.

“We are calling on all parties to heed the warnings coming from our sector, and to act now – before it is too late.”

ENDS 

About the AUSVEG Industry Sentiment Survey

AUSVEG has conducted industry sentiment surveys each six months since 2023, to provide a current and cumulative snapshot of grower sentiment across the national industry. The surveys have attracted responses from large, medium and small-scale growers from all states and the Northern Territory. Respondents to the most recent survey conservatively represented $1.2 billion in annual turnover.

About AUSVEG

AUSVEG is the national peak industry body for Australia’s over 3,600 vegetable, potato and onion producers, who account for 3.6 million tonnes of vegetable production worth $5.8 billion in farmgate value annually. This accounts for one third of Australia’s $16.2 billion horticulture industry.

MEDIA CONTACT:

Andrew MacDonald, National Manager – Communications, AUSVEG
Phone: 03 9882 0277, Mobile: 0406 836 330, Email: andrew.macdonald@ausveg.com.au
Campbell Cooney, Senior Communications Officer, AUSVEG
Phone: 03 9882 0277, Mobile: 0437 278 464, Email: campbell.cooney@ausveg.com.au