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Queensland herb farmers face surplus amid stable demand and rising costs

In Biloela, central Queensland, Richard Fairley's farm has been experiencing a bountiful herb season, attributing the success to the favorable conditions of spring and winter. The farm's production includes coriander, parsley, and chives during the colder months, and basil and oregano for the spring season. This trend of increased herb yield is not isolated to Fairley's operations but is observed nationwide. Paul Joseph, managing director of Alfred E Chave, a wholesaler based in Brisbane, reports a saturated market, with some farms seeing production rates double due to "exceptional" weather conditions.

Despite the abundance, the demand for fresh herbs has not seen a corresponding increase, potentially due to the cost-of-living crisis affecting consumer behavior. Joseph notes that the nature of herb usage doesn't lend itself to bulk purchases, even when supply exceeds demand. Efforts are underway among growers and suppliers to adjust production to better align with market needs, amid concerns over the volatility and perishability of herbs as a product category.

The herb market's challenges are compounded by static pricing and rising production costs, particularly labor, which is a significant factor for this labor-intensive crop. Nonetheless, the hospitality industry's demand for fresh herbs is expected to remain stable. On the export front, Fairley's Farm contributes to the supply chain for a company distributing lightly dried herbs and pastes internationally, with a notable share of exports destined for the American market. As the industry navigates shifting demand and market dynamics, stakeholders remain cautiously optimistic about the future.

Source: ABC News

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