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Prices of fresh vegetables are falling, but there's concern a huge oversupply may not reach consumers who are battling cost of living pressures.
Key points:
- The prices of vegetables are plummeting as a huge influx hits the market
- An unusually good winter season across northern growing areas has led to an oversupply of foods like capsicums, zucchinis and tomatoes
- However, cost of living pressures have seen consumer demand for vegetables drop right off
An oversupply of fresh produce, including capsicums and tomatoes, can be attributed to an unusually warm winter in northern Australia's growing regions.
Large harvests of winter vegetables are coming out of major production areas, including the Bowen Gumlu region in north Queensland.
Farmer and president of the Bowen Gumlu Growers Association Carl Walker says while farmers always hope for a good season, this one has been "too good" and has resulted in oversupply.
"We've got the same [number] of plants in the ground, but the production is up by 30 per cent," he said.
"Unfortunately, when you've got beautiful fruit, everyone else has as well.
"Capsicums, there's a lot, and gourmet tomatoes, there's a little bit too many of those as well."
Mackay-based fruit and vegetable grower Karl Mau has experienced similar problems and is struggling to move all the tomatoes, capsicums and zucchinis coming off his farm.
"Because of the hot weather, everything's just ripening all at once," he said.
"I'm fairly small. I just try and target local suppliers here in town.
"So, with an oversupply, I've got to try and do a bit of advertising and try and move a bit through customers."
70pc price drop but consumer demand plummets
Michael Piccolo is a fruit and vegetable wholesaler in Melbourne.
He sells to the food service and hospitality industry along with local markets and says it's quiet on all fronts.
"Our company supplies a lot of catering companies and a lot of restaurants are seeing big price increases," Mr Piccolo said.
"All costs have gone up, but people aren't eating out because they can't afford it.
"It's a perfect storm at the moment – business suffers."
Because of an oversupply of fruit and vegetables, Mr Piccolo is seeing price drops on produce as high as 70 per cent compared to winter last year.
"I was speaking to a guy who supplies us with beans, and he was basically saying that last year at this time, snow peas were $100 for 5 kilos, now this week they're $30," he said.
"Many products were at that level; broccoli, cauliflower, ginger was at huge levels, now it's a quarter of that.
"Avocadoes are very low, tomatoes even lower."
Mr Walker said he wasn't surprised to see demand dropping in the current economy.
"I think at the moment, people are probably saving dollars to pay for things and the first thing you stop buying is fresh food, unfortunately."
Farmers could be left out of pocket
Mr Piccolo says that with most produce now coming out of Queensland, many producers can't afford to even send stock to Victoria.
"What we're finding with producers is, because of the labour costs, transportation [and] fertiliser prices, transportation is difficult," he said.
"Just to get one box down to Melbourne, it's $3 to $4."
Mr Piccolo says if prices continue to drop some producers will choose not to harvest.
"It's just not worth it," he said
"Because if the prices get too low, it obviously surpasses that cost of production, and they can't get that back.
"With interest rates rising so quickly … obviously it's going to continue."
Mr Walker said farmers are already losing money and unable to cover their growing costs.
"I was talking to a grower, and he said [he's making] less than the cost of production," he said.
"You're getting some of your costs back, but not all the growing costs.
"So, it means that you may be losing $1 to $5 per box."
Mr Walker anticipates many crops won't make it onto market shelves this year, but some excess crop may be directed to charity.
"Quite a few tens of thousands of tons of produce from the Bowen region goes to Foodbank to help the people that aren't as lucky as we are," he said.
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