Interruptions to global container shipping linked to the Middle East conflict are affecting Western Australia's carrot sector, valued at US$40 million in exports to the region. In 2025, Australia exported more than 48,000 tons of carrots worth US$40 million to Middle Eastern markets.
Western Australia accounts for the majority of export volumes, with production concentrated north of Perth. Growers report that more than 600 tons of carrots are typically processed weekly for export, but shipments stopped when the conflict began. With limited access to export markets, some producers are preparing to plough crops back into the ground.
Vegetables WA chief executive Peter Spackman said the situation is affecting growers who have already invested in inputs and crop management. "They've already sunk a lot of cost in regards to fertiliser and planting the plants and looking after them; only to plough them in is a disaster for those businesses," he said.
"They don't wish to add extra cost to their loss already, they can't afford the labour to pick it and then do something with it if they haven't got a market for it. Unfortunately, the option would be to plough it in and compost it."
One grower estimated that around 40 hectares of crop may be composted, representing a loss of about US$2 million. Spackman said uncertainty is influencing planting decisions and could affect future production and employment. "These companies are having to make some very hard decisions due to the uncertainty … some of them may be considering not planting moving forward. That will have consequences for staff," he said.
Export volumes already in transit are also at risk. "If they can't get it to the market, and can't meet their contracts, and it's a loss where they have to dump it, it's a significant amount of money to come out of a business," Spackman said. He added that most shipments are not insured.
The domestic market is not able to absorb the additional volume. "There are only so many carrots that can be consumed on the domestic market; people aren't going to eat four or five times more carrots," he said.
In addition to shipping disruptions, growers report concerns about fuel availability for planting, irrigation, and harvesting.
Shipping Australia policy manager Jim Wilson said container shipping disruptions are affecting multiple routes. "When you take a large chunk of vessels out of service, you're reducing supply, and as any good economist will tell you, if you reduce supply and demand remains constant, price will increase," he said.
Freight rates and surcharges are expected to increase as shipping capacity is reduced.
Source: ABC News
