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Australian vegetable sector calls for support as input costs rise

Australia's vegetable sector is calling for government action as input shortages and cost pressures linked to the Middle East conflict continue to affect production and supply chains. Industry body Ausveg said immediate, medium, and long-term measures are required to support growers and maintain the domestic supply.

In the short term, Ausveg is requesting recognition of horticulture as an essential industry to secure priority access to inputs such as diesel, energy, and fertiliser. It is also calling for expansion of the Economic Resilience Program to include primary producers, and the introduction of a real-time fertiliser availability dashboard to support planting decisions.

The organisation highlighted declining vegetable consumption at 1.8 serves per person per day and is seeking support for a national campaign to increase intake. It also pointed to compliance costs estimated at $213 million to $250 million annually, or 4.3% of farm costs, and is advocating regulatory reform, including adoption of recommendations to reduce duplication and streamline processes. Financial support from banks, including loan deferrals and fee waivers, is also being requested, alongside measures to maintain workforce attendance and increased regulatory scrutiny of pricing practices across the supply chain.

Over the short to medium term, Ausveg is calling for investment in productivity through infrastructure upgrades, including an innovation grant program and taxation incentives such as an enhanced instant asset write-off. It also highlighted the need for competition policy reform, improved grower-retailer relations, and energy cost relief, noting ongoing increases in gas and electricity prices. Support for sustainability initiatives, including renewable energy and water efficiency infrastructure, is also being requested.

In the medium to long term, Ausveg is advocating for increased domestic manufacturing of key inputs such as fertiliser, crop protection products, and packaging to reduce exposure to global supply disruptions. It also raised concerns about rising imports of processed vegetables and called for support for domestic food manufacturing through investment programs aimed at improving productivity and long-term supply chain resilience.

For more information:
Ausveg
Tel: +61 (0) 3 9882 0277
Email: [email protected]
www.ausveg.com.au

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