Protests a part of larger campaign against announced rent increases set to rise by over 100 per cent over the next ten years
Fruit and vegetable wholesalers from Melbourne Market gathered outside the Melbourne Market Authority (MMA) on 16 October, in protest at the rent increases announced last week.
The group blockaded the Gate 1 entrance to the Melbourne markets following the completion of trade for the day calling on the authority to freeze the rent.
The government-owned MMA, which serves as the market’s landlord, had announced plans to increase the annual rent for its wholesaler tenants by between 6.72 per cent and 7.6 per cent, compounding year on year for ten years. Under this plan, prices will more than double in that time.
In response to the announcement, Victorian fruit and vegetable wholesalers called on the MMA board to resign.
Speaking at the protest, Fresh State chief executive Jason Cooper said the rent increase would push many of its wholesaler members over the edge.
“The facts are this rent increase is a recipe for disaster,” he said. “It will not only push fruit and vegetable prices up, but also push wholesalers out of business, and push families, restaurants, and grocers to the brink. With fresh produce we are headed towards a much bigger cost-of-living crisis than many people think.”
The protest formed part of Fresh Care’s ongoing Take the Pressure Off campaign, which aims to take the pressure off fruit and vegetable prices and temporarily freeze rent at the wholesale market. Cooper said the campaign sought to establish a viable, long-term commercial arrangement for wholesalers.
The MMA is holding an extended review period to review the new lease terms and advised any tenants who are concerned about the rent adjustments to contact the MMA.
The authority has spread the adjustment over ten years with the aim of helping tenants plan for and manage the implications for their business.
Other cost reduction measures to include reducing security bonds from six months to four months, eliminating annual bond ‘top ups’, savings on electricity and no further rent reviews until 2034.
“Rents have been held below market rates for almost ten years to support tenants through the move from Footscray to Epping in 2015 and throughout the Covid-19 pandemic,” a MMA pokesperson said.
“This decision will ensure Melbourne Market is sustainable into the future and can continue to provide Victorians access to affordable fresh produce, with the adjustment to be below market rates over the next ten years to help tenants plan for and manage their business.”
