Australia, a country known as a major agricultural exporter, has recently faced the serious challenge of low vegetable consumption. The Associated Press reported on the 2nd that Australia’s current vegetable consumption and prices are declining. The country’s latest vegetable industry research report shows that 34% of the country’s growers are considering giving up vegetable farming due to high costs and low returns.
The Main Reason
High costs, low returns: Australian vegetable growers are facing the double pressure of high costs and low returns. The increasing cost of cultivation, especially the cost of labor and production materials, makes vegetable cultivation less economical. At the same time, due to the decline in vegetable prices, growers’ incomes have been seriously affected, resulting in more than 30% of growers considering giving up vegetable farming.
Low per capita vegetable consumption: Australia’s per capita vegetable consumption is at a low level. Data shows that only about 6.5% of Australia’s population of more than 26 million people consume five standardized servings of 75 grams of vegetables per day in accordance with dietary recommendations, while the majority of people consume less than two standardized servings of vegetables per day. Reduced consumption has led to a decline in vegetable prices, with the average price of a standard serving of vegetables now selling for only A$0.65.
Severe weather: Australia’s major growing regions, particularly Queensland, have suffered from severe weather conditions, including persistent heavy rain and low sunshine, which have limited the availability of key fruits and vegetables. Severe weather not only affected the growth and quality of vegetables, but also led to supply shortages.
Inflation and rising cost of living: Australia is facing inflation and rising cost of living. Food price inflation is about to accelerate, with suppliers requesting multiple price increases from large retailers, which could push shelf prices to levels above 12%. Price increases and shortages will encourage consumers to turn to frozen vegetables and canned foods.
Supply Chain Disruption: Embargoes, travel restrictions, and labor shortages resulting from the COVID-19 outbreak have disrupted the supply chain, affecting the production, distribution, and transportation of fresh vegetables. This disruption resulted in delays in getting products to market, reducing market availability.
Changing consumer preferences: Growing consumer awareness of health and environmental issues has increased demand for organic and sustainably grown vegetables. At the same time, consumers are price sensitive and value service and logistical experience, factors that also influence vegetable consumption.
Increase in Imported Vegetables: According to the Australian Bureau of Statistics, the value of imported vegetables in Australia has increased by 27% since 2022 to over A$1 billion. This suggests that Australia’s increased reliance on imported vegetables may have affected the consumption of local vegetables.
Implications for Australian Agriculture
The challenges facing Australian vegetable growers go beyond reduced consumption. High costs and low returns are another important reason for them to consider switching. Soaring growing costs, especially for labor and means of production, have made vegetable farming less economical. In addition, growers’ incomes have been seriously affected by the drop in vegetable prices, which further aggravates their financial pressure.
The downturn in the vegetable industry may also lead to changes in the structure of agricultural production, and some growers may switch to other more profitable crops or abandon farming altogether. Secondly, the decline in vegetable growers may affect Australia’s self-sufficiency in vegetables, with 98% of fresh vegetables currently produced in the country. If this trend continues, Australia may need to increase its imports of vegetables, which would have implications for the country’s balance of trade and food security.
In the face of this challenge, Australian growers call on the government and relevant departments to take measures to promote healthy diets, reduce the intake of processed foods and increase the intake of vegetables. In addition, they also hope that the government can provide policy support to help them cope with the challenges posed by rising costs.
