‘Cost of living’ may well have been the phrase of 2023. With continuous interest rate rises throughout the year, the inflationary crunch was felt across a host of daily purchases such as fuel and many everyday items at the supermarket.
Despite these rising costs for consumers, there was, and continues to be, no silver lining for horticultural growers. The increased costs of produce aren’t translating into higher returns for farmers, with a stark discrepancy between what farmers are paid for their produce and what the consumer pays at the checkout.
This comes at a time of rising input costs increasing the overall cost of production by between 30 and 65 percent in horticulture, on a small margin of around 3 to 5 percent. As a result of this ‘margin squeeze’ and a range of other factors, a recent industry report from AUSVEG has shown that more than 30 percent of Australia’s vegetable growers are looking to exit the industry over the next 12 months.
Late last year, Queensland Fruit & Vegetable Growers (QFVG), a QFF member and the state industry body for fruit, vegetables, and nuts, launched their national #WeGiveAFork campaign focused on the ongoing margin squeeze, alongside two other key issues impacting the sector; the ‘policy pile-on’ of rapid industrial and human relations reforms over the past 18 months, and concerns around the reputation and brand of the sector itself.
QFVG CEO Rachel Chambers said the campaign hopes to shine the spotlight and raise awareness around these three key issues. The campaign has seen a myriad of media stories focused largely on the cost of produce at supermarkets, with recent extreme weather events in Queensland amplifying attention on the issue leading into the recent Christmas holiday period.
Naturally, there is a strong political incentive to examine supermarket costs, with the Australian Greens securing a senate review into the Food and Grocery Code of Conduct in December of 2023, and the Federal Shadow Agriculture Minister David Littleproud calling for an ACCC inquiry into supermarket pricing. The senate inquiry’s initial hearings are expected to take place early in 2024.
Last week the Queensland Premier the Hon Dr Steven Miles sent an open letter to the big supermarkets concerning margin squeeze impacting Queensland agriculture. While moves towards improving the price paid to farmers are welcomed by the industry, QFVG notes that the ‘narrative of the farmer vs supermarket’ is just one part of a very complex puzzle.
QFVG pointed to the policy burdens that the government themselves have placed on growers as key concerns, with a host of new industrial relations reforms impacting costs and constraining an already tight agricultural labour market and directly impacting production and productivity on farm.
As we look in detail at the issue of the real cost of food production, what the consumer is paying at the checkout vs what returns a farmer actually receives, the questions cannot be ignored. Do we value the quality and quantity of fresh food produced in Australia? Do we want future generations to be able to enjoy access to affordable, quality Aussie food as we all have? If we do want to maintain food security for all in this country, what are the key levers that need to be pulled? Food for thought.
You can learn more and get behind the #WeGiveAFork campaign at www.wegiveafork.com.au