Ausveg has released research quantifying the cost and scale of compliance, regulation, and red tape across the Australian vegetable industry. The Horticulture Compliance and Regulation: Reducing the burden by 2030 report estimates the annual cost of compliance for growers at US$213 million, equal to 4 per cent of average operating costs.
The release of the report coincided with the 2025 Ausveg Industry Sentiment Report, which recorded a continuing decline in grower confidence. Two in five vegetable growers surveyed in July said they are actively considering leaving the industry within the next year, up from one in three since January 2025. A further two in five said they would leave if they had a viable exit option.
The latest survey highlighted ongoing challenges for growers, including a lack of profit for reinvestment, compliance burden, increased input costs, poor retail pricing, and higher labour expenses. According to the results, 62 per cent of surveyed growers said they were financially worse off compared with 12 months earlier, and 53 per cent expect to be worse off in the next year.
The compliance report, commissioned by Ausveg and produced by Corporate Value Associates, examined the impact of regulation across large and small vegetable businesses. The report found compliance costs represent 42 per cent of industry earnings before interest, taxes, depreciation, and amortisation (EBITDA), which averages 9 per cent. A 25 per cent reduction in compliance costs would save growers around US$53 million per year.
The analysis showed compliance and certification requirements for vegetable growing and on-farm packing now cover around 50 areas of business operations. Almost 90 per cent of surveyed growers reported negative impacts on stress and mental well-being from compliance audits, while more than 80 per cent identified opportunities for improvement.
The report set out 34 recommendations to reduce duplication, streamline certification and audit processes, shift towards results-based compliance, and improve government processes and support services. Ausveg is working to establish an industry taskforce to advance these recommendations.
Ausveg CEO Michael Coote said compliance obligations have expanded in scope and complexity, creating duplication and increasing cost pressures. "Vegetable growers accept that certain compliance is necessary, particularly around food safety and the well-being of consumers, employees, and themselves, but with the burden of compliance now equating to an estimated 42 per cent of vegetable growers' EBITDA, it is clear that even moderate compliance efficiencies will have material productivity and profitability benefits," he said.
For more information:
Ausveg
Tel: +61 (0) 3 9882 0277
Email: [email protected]
www.ausveg.com.au
