Vegetable growers in Australia are reducing planting schedules as rising input costs and supply shortages continue to affect production, according to Ausveg.
A survey of more than 200 growers found that 28 per cent have reduced or stopped planting, while a further 16 per cent are considering adjustments. Those who have reduced planting have done so by an average of 35 per cent.
Growers reported increasing pressure from input shortages and rising costs. Diesel availability remains limited, with 76 per cent of growers holding three weeks or less of supply. Of these, 15 per cent have one week or less, 34 per cent have two weeks, and 27 per cent have three weeks of supply remaining.
Fuel costs have increased by an average of 75 per cent since the end of February, while freight surcharges are averaging close to 40 per cent. Fertiliser supply is also constrained, with 47 per cent of growers reporting three weeks or less of availability. Fertiliser costs have increased by an average of 53 per cent, although some growers have yet to place new orders.
Despite these cost increases, growers reported they have only been able to pass on an average of 9.7 per cent to customers.
Vegetable production in Australia supplies around 10,000 tons of fresh produce to the market each day and accounts for 98 per cent of domestic fresh vegetable consumption. Growers reported that uncertainty around input availability and pricing is affecting planting and harvesting decisions.
Ausveg stated that growers require more than 5,200 litres of diesel per week on average, equating to approximately 19 million litres per week across the sector. Input costs are also increasing across packaging, crop protection products, and service-related charges.
The organisation called for clearer policy measures to ensure access to diesel, fertiliser, and freight. It also requested regulatory oversight of retail pricing to ensure cost increases are reflected in supply contracts.
Additional proposals include the establishment of a fertiliser taskforce, prioritisation of growers in any rationing systems, improved access to freight and refrigerated transport, and financial support measures such as loan deferrals and reduced fees.
Ausveg stated that input cost uncertainty and limited ability to recover costs are influencing production decisions, with implications for supply continuity.
For more information:
Andrew MacDonald
AUSVEG
Tel: +61 (0) 3 9882 0277
Email: [email protected]
www.ausveg.com.au
