The surge in prices for fresh fruits and vegetables in Australian markets has caught the attention of shoppers, who are noticing a significant price gap compared to canned produce. Despite being typically grown and processed in various countries before reaching Australian shelves, certain fresh produce items have become much more expensive, prompting concerns about transparency in the agricultural industry.
Ben Lyons, the director of the Rural Economies Centre of Excellence at the University of Southern Queensland, attributes this disparity to several factors. He notes that Australian farmers are facing substantial increases in expenses, ranging from 30 to 60 percent over the past five years, primarily due to rising fuel costs and stricter industrial relations laws. In contrast, canned produce is often processed overseas by large conglomerates at lower costs, thanks to economies of scale and the extended shelf life of canned goods, which reduces the risk of spoilage during production and storage.
Dr. Lyons highlights the significant issue of food wastage in Australia, emphasizing that the amount of food discarded could cover an area as large as Victoria if all the wasted food were to be grown. Despite this, fresh produce prices remain high compared to canned alternatives. For example, a comparison conducted by ABC Radio Brisbane found that fresh tomatoes at Woolworths were more than twice as expensive as tinned tomatoes.
The dominance of Australia's major supermarkets in dictating prices and the lack of bargaining power for farmers exacerbate the situation. Dr. Lyons explains that many farmers are facing pressure to sell their land and leave the industry due to rising costs that are not offset by the wholesale prices offered by supermarkets. He points out the lack of transparency in market operations as a significant challenge, urging for greater scrutiny and questioning of the current system.
Overall, the disparity in prices between fresh and canned produce underscores broader concerns about the agricultural industry's sustainability, transparency, and the need for fairer market practices to support farmers and ensure food affordability for consumers.
Source: www.abc.net.au