In a recent development, the Melbourne Wholesale Fruit and Vegetable Market in Epping is facing a dramatic increase in rent, as announced by the Melbourne Market Authority. This decision has led to concerns among wholesalers about the potential rise in grocery prices. The authority, a government entity, has outlined a plan to escalate rent for its tenants by more than 100% over the next decade. Fresh State, representing the wholesalers, has expressed significant discontent with this move, prompting calls for the board's resignation.
According to Fresh State's chief executive, Jason Cooper, such an increase in rent is likely to affect consumer prices adversely. "You can't hand down this type of increase without some of it being passed to the consumers," he stated, highlighting the potential for negative repercussions within the industry. Traders are anticipating a 7.6% annual increase in rent over ten years, a change that will substantially elevate operational costs from the current average of $100,000 to over $220,000 by the decade's end.
The state government and the Melbourne Market Authority have defended their position, suggesting the impact on grocery prices will depend on whether tenants decide to pass on the higher costs. They also referenced the transition to the new market facility in Epping, which had not seen a rent increase for ten years. Despite these justifications, concerns persist about the potential for increased costs to be transferred to growers, retailers, and ultimately, consumers, affecting the affordability of fruit and vegetables for Victorian families. The rent adjustments are scheduled to commence in November.
Source: 9NEWS