Ausveg's latest 2025 Vegetable Industry Sentiment Report indicates that workforce shortages in Australia's vegetable industry are worsening, despite reports suggesting that more backpackers are entering the country and helping to fill agricultural roles.
The report shows that two in five vegetable growers are considering leaving the sector within the next year, citing workforce shortages, compliance pressures, low retail prices, and rising production costs as key factors.
In Ausveg's July survey, over 60% of vegetable growers reported experiencing workforce shortages, almost double the 36% who reported the same issue a year earlier. Only 2% expect an improvement over the next year, while one-third believe the situation will deteriorate further.
© Ausveg
The shortages extend beyond seasonal or lower-skilled work, affecting all levels of farm employment. Ninety-two percent of growers reported shortages in full-time roles and 87% in part-time roles. Permanent positions, including skilled and semi-skilled jobs, were most affected, with over 60% of growers describing shortages as "drastic." The most common vacancies were in management, supervisory, and leading hand roles, positions critical to overseeing production, workforce, and compliance operations.
Growers in rural and regional areas also face competition for skilled workers from other sectors such as mining and broadacre agriculture, contributing to further wage pressure. Labour accounts for an average of 38% of total production costs and can reach up to 70% for more labour-intensive crops. In addition to rising costs, productivity has been affected, with output slowing and less experienced workers requiring more supervision and training.
Ausveg representatives said the issue is central to the long-term productivity of the national economy. The organisation has proposed a national strategy to address rural and regional workforce shortages and has advocated for adjustments to visa programs to improve employment pathways for both seasonal and skilled positions.
The report also notes that mechanisation and agricultural technology could help reduce workforce reliance in the long term. However, many growers lack the financial capacity to invest in automation due to high production costs and reduced profitability.
The data highlights the ongoing strain on Australia's vegetable sector, which supplies a core component of the national diet. Without effective workforce solutions, the report warns that both growers and consumers could face broader economic and supply impacts in the years ahead.
For more information:
Ausveg
Tel: +61 (0) 3 9882 0277
Email: [email protected]
www.ausveg.com.au
