An average 3 per cent drop in Australian vegetable farm incomes in 2007/08 is an indication of the pressure being put on the country’s growers by imports and rising input costs, according to peak industry body Ausveg.
The figures were released in a report from the Australian Bureau of Agricultural and Resource Economics (ABARE) on Wednesday, entitled Australian Vegetable Growing Farms: An Economic Survey, 2007-08. The report was commissioned by Horticulture Australia Limited (HAL).
“The results are a reflection of the fact that Australian vegetable growers are increasingly competing with imports from countries such as China, where input costs such as labour are significantly lower,” said Ausveg CEO Richard Mulcahy.
“Rising input costs represent a major challenge for the industry and in most cases these costs are not being passed on to the consumer which is resulting in reduced profits for growers.”
According to the report, 86 per cent of the country’s vegetable growers see input costs as the biggest stumbling block in the industry’s future.
“If we are to compete with China we must ensure that input costs are kept down where possible and that the benefits of local production for the consumer, such as safer fresher produce, and a strong local economy that supports Australian jobs, are better understood,” stated Mr Mulcahy.
