Australian food suppliers have made an urgent plea to supermarkets to hike up the price of locally-produced vegetables in a bid to combat the fuel crisis.
Industry leaders Ausveg have warned supermarkets that the crisis in the Middle East has seen overheads skyrocket – from the cost of fuel itself to how much producers are spending on vital resources like fertilisers.
And they warned that unless prices paid to growers are increased, the availability of fresh Australian vegetables will suffer.
This, in turn, would likely result in increases on the shleves as well.
Michael Coote, chief executive of Ausveg said: “As Australians sit down to Easter meals with friends, families and loved ones, we encourage every Aussie to consider where the food on their plates has come from, and spare a thought for the nation’s vegetable growers, working tirelessly through extreme uncertainty, surging production costs and critical input shortages to make meals like these possible.
“Major and continuing concerns over cost, supply and availability of critical farm inputs like fertiliser fuel and freight, have already led to vegetable producers adjusting their plans and planting schedules, and are continuing to threaten their future viabilities.
“These issues won’t magically disappear after the Easter break, and it remains critical that all Australian vegetable growers receive assurances from their customers that they will receive viable farmgate prices for the produce, and assurances from the government that they will be prioritised for critical farm inputs like fuel, fertiliser and freight.”
Mr Coote added that the organisation has been meeting with major food retailers in the country and have urged them to consider “genuine, evidence-based price increase requests”.
He added: “Without these assurances, as well as action on the longer term, system-wide issues that have increasingly threatened vegetable grower viability over recent years, the supply and availability of critical, safe, fresh Australian vegetables will decline.”
He warned that failure to act could see a greater reliance on “cheap, imported frozen and processed vegetables”, which he described as a “silent epidemic”.
The calls come after supermarket bosses already warned that the crisis was likely to hit shoppers in the pocket as the ripple effect continues to take toll.
Fred Harrison, chief executive of Ritchies IGA, told Channel 7’s Sunrise: “We’ve never been more price competitive as we are today. But we understand that, particularly in fresh food, there has to be some adjustments with things like fuel levies being applied to produce.
“Fruit and veg is probably the product that reflects what is happening in the market at any one point in time.”
And supermarket giants Coles and Woolworths have also confirmed that suppliers have asked for price increases.
A Woolworths spokesman told The Australian: “We need to strike the right balance of supporting the viability of our suppliers and transport partners while advocating for our mutual customers to help buffer the impact on them at the checkout.”
A Coles spokesman said: “Coles’ long-term, direct relationship with supplies, including Australian farmers, mean we are able to work with them to manage their own cost pressures, support continuity of supply, and smooth the impact on customers.
“We are committed to providing value to our customers. Our first priority will always be to mitigate any change from flowing through to the shelf.”
