Australia's vegetable industry is facing a crisis, with one-third of growers considering leaving the sector within the next year due to rising production costs and poor profitability. Many more have indicated they would exit if offered a fair price for their farm, raising serious concerns about the future supply of Australian-grown fresh vegetables.
The latest Ausveg Industry Sentiment Survey, conducted between December 2024 and February 2025, highlights the worsening financial strain on farmers. Since 2023, an average of 32 percent of growers have considered leaving, while an additional third in the most recent survey would follow suit if they received a fair offer. Nearly 50 percent of growers reported being worse off financially than a year ago, and 40 percent expect their situation to decline further, up from 28 percent in mid-2024.
Investment in the industry has also taken a hit. Eighty-one percent of growers have delayed capital infrastructure improvements, 56 percent have cut back on innovation and productivity investments, and 46 percent have reduced spending on asset maintenance. The primary reasons for these struggles include rising input costs, poor farmgate returns, workforce shortages, regulatory burdens, and lack of investment support. The mental health toll on growers is also a major factor, with many citing personal and financial stress as key reasons for considering an exit.
Ausveg CEO Michael Coote warns that unless conditions improve, the industry could see a mass exodus of growers. Many farmers have already left, while others are reducing vegetable production or seeking alternative income streams. Coote stresses that such a loss would have catastrophic effects on food supply, drive up consumer prices, and threaten national food security.
To address these challenges, Ausveg has launched its 2025 Federal election priorities, calling for 21 key commitments from all political parties. These priorities focus on securing the national food supply, stabilizing the agricultural workforce, supporting business growth, and ensuring a sustainable future. The organization is also advocating for a $125 million, five-year initiative to boost vegetable consumption.
With 98 percent of Australia's fresh vegetables produced locally, Coote urges policymakers to recognize the urgency of the situation and act before it's too late. He emphasizes that protecting the vegetable industry is not just about supporting farmers—it is essential for maintaining stable food prices and ensuring long-term food security for the country.
For more information:
Andrew MacDonald
AUSVEG
Tel: +61 03 9882 0277
Email: andrew.macdonald@ausveg.com.au
www.ausveg.com.au