FRUIT and veggie prices are set to fall as summer nears and vegetables from Queensland become more available, AusVeg says.
Peak industry body AusVeg said the price drop would come from an increase in supply.
AusVeg’s public affairs manager William Churchill said consumers would see a markedly reduced price in tomatoes.
“Supplies are generally plentiful in summer so tomato prices will likely come down as we get to summer,” Mr Churchill said.
“The tomato industry has had a rather large shakeup over the past year with the collapse of SP exports and to some extent we’re now seeing the effects of that ripple through this season.
“In addition to unfavourable weather conditions in Bowen, Queensland, this has affected the supply and prices.”
Mr Churchill said the high Australian dollar had led to an increase in imported processed food, making it difficult for local producers to compete.
“The dollar currently where it is makes it attractive for importers and pushes growers to the wall as they try to compete against product that is grown cheaper and has the currency advantage,” Mr Churchill said.
“We need to look at what options are available to growers because when the day comes that the dollar is low again, and it will happen, we need to have some farmers left who will be able to grow food for the country.
“It does come back to a long term planning and food security problem.”
Mr Churchill said oversupply and price fluctuations could affect the entire country.
“We saw it last year in Tasmania with the oversupply being noticed everywhere,” Mr Churchill said.
“Given that produce can be moved around the entire country relatively quickly it’s possible for these implications to be felt elsewhere.”
Mr Churchill said the shortage of tomatoes in the north of Queensland created an attractive market for a grower in NSW or Victoria to send their produce north.
Mr Churchill said consumers were always “looking to pay zero” for their food but had a tolerance for paying more depending on what they were after.
“Half the problem is actually at the feet of Coles and Woolworths, they have so many consumers now hoodwinked into believing that their food should be cheaper than it currently is, but there is a point where growers cannot afford to sell the product for any less without sacrificing quality.”
Source: Weekly Times Now