Compliance costs threaten future of vegetable farming

A new report from AUSVEG has found that compliance and regulation are costing Australia’s vegetable growers more than $213 million a year, with two in five considering leaving the industry within the next 12 months.

The Horticulture compliance and regulation: reducing the burden by 2030 report reveals that compliance costs now account for 42 per cent of the industry’s earnings before interest, tax, depreciation and amortization (EBITDA) – placing significant pressure on profitability.

AUSVEG CEO Michael Coote said the burden is unsustainable.

“Vegetable growers accept that certain compliance is necessary, particularly around food safety... but even moderate compliance efficiencies will have material benefits,” he said.

The most recent industry sentiment survey found that 62 per cent of growers are financially worse off than a year ago, with 53 per cent expecting things to get worse. The report also found that almost nine in 10 growers say compliance audits negatively impact their mental wellbeing.

Mr Coote said the industry needs smarter compliance.

“Growers need to be spending less time filling in forms and more time getting on with their real jobs – producing the world-class vegetables that Australians depend on,” he said.

AUSVEG is now working to establish a taskforce to implement 34 recommendations aimed at reducing duplication and streamlining compliance processes across the industry.