VEGETABLE SECTOR UNDER PRESSURE AS PRICES FALL

The latest figures from the Australian Bureau of Statistics show vegetable prices fell 4.1% in the year to July despite a rise in overall inflation, including food and non-alcoholic beverages.

AUSVEG says while the fall offers some cost-of-living relief for Australian shoppers, the figures also highlight the difficult conditions facing vegetable growers.

The organisation warns growers are facing surging production costs and years of deteriorating operating conditions and margins, with many still struggling to secure farmgate returns that cover those increased costs.

AUSVEG chief executive Michael Coote says the fall in vegetable prices is occurring despite growers facing many of the same cost pressures as businesses across the wider economy.

He says some growers have secured moderate increases in farmgate returns from retailers since the Middle East conflict began, but many report that those increases have not been enough to cover higher production costs.

Moving forward, AUSVEG is calling for Australians to increase their consumption of locally grown vegetables, with stronger demand and better returns needed to support the long-term viability of the sector.