Stats confirm price pressures on Aussie veggie growers

Data released in the Australian Horticulture Statistics Handbook showed a $140 million drop in the overall farmgate value of vegetables produced in Australia during 2023–24, despite an increase in overall production, which may affirm the price pressures contributing to a third of Australian vegetable growers considering leaving the industry in the next year.

The latest official statistics reveal Australian growers produced an overall 3.83 million tonnes of vegetables in 2023–24, compared to 3.58 million tonnes the previous year, while overall production value dropped to $5.7 billion from $5.84 billion.

The drop in farmgate value means Australian growers overall earned 8% less per kilo of vegetables than the previous year, compounded further by a 3.8 increase in CPI over the same period. In real terms, that equates to a 12% drop in farmgate returns for vegetable growers.

The Australian Horticulture Statistics Handbook, released by Hort Innovation each year, provides comprehensive and up-to-date annual data available on more than 75 horticultural products including fruit, nuts, vegetables, nursery, turf and cut flowers.

AUSVEG CEO Michael Coote said the handbook continues to provide growers and industry with an important picture of macro and micro insights and themes in the Australian horticulture industry.

“This latest data reflects the experiences of the vegetable growers we speak to each day, who are continuing to face major challenges with a cost-of-production crisis and struggles securing prices that not only cover their costs but allow them to stay viable by turning a profit,” Coote said.

“With the handbook again confirming that Australian growers are supplying more than 98% of the fresh vegetables bought and consumed nationally each year, this is another reminder of how critical our sector is to national food security and the health of all Australians.

“It is just as critical to ensure that growers have the capacity and opportunity to continue accessing the latest farm productivity and profitability enhancing innovations and breakthroughs — which is why the ongoing program of research and development work funded through grower levies and overseen by Hort Innovation is particularly important in the current business environment.”

Reflecting the diversity of crops produced, trends were not universal across all commodities. While production volumes of most vegetable crops recovered in 2023–24 following challenging climatic conditions the previous year, some crops experienced production drops, such as carrots, cabbages, leeks, sweet potatoes and zucchini. Peas experienced a drop of 23%.

Notable volume growth was seen in beans, ginger, head lettuce and cucumbers with growth of 12–14%. Potatoes recorded a 5% increase in production volume to 1.5 million tonnes and a 7% increase in production value to $1.1 billion. Onion production volume grew 7% to 272,000 tonnes, but production value fell 13% to $290 million.

Hort Innovation CEO Brett Fifield said the handbook was an important resource for growers and other members of the industry.

“Hort Innovation produces the handbook each year to give industry members the data and insights they need to guide their decision-making,” he said. “This year’s data shows total horticulture production volume increasing by 6.6% to 6.89 million tonnes, which represents a significant bounce back after a challenging season for many categories the year prior. It also demonstrates the resilience and capabilities of Australian growers.

“The total value of Australian horticulture production rose 4.3% to $17 billion, reflecting the crucial role horticulture plays in feeding the nation and the Australian economy.”

Image credit: iStock.com/AlexRaths