Growers search for solutions amid rising costs and extreme weather

On January 25, the federal government announced that the ACCC would conduct an inquiry into pricing and competition in the supermarket sector to ensure Australians are paying a fair price for their groceries.

With the final report not due out until February 2025, growers continue to bare the weight of input costs, which have increased by 37 per cent in the last three years and disparity between farm-gate and supermarket prices.

Granite Belt grower Connie Taylor has seen the impact of increased costs and weather extremes first hand.

And while she said they had been through tough times in recent years, she was optimistic about the changes that could be brought about by the inquiry.

"At least we are being heard now, our concerns have fallen on deaf ears for years," she said.

"It's good to see that there is an investigation going, that we believe, will happen routinely in the future.

"When you have a generation that are still wanting to be in the industry we have to guide that.

"We need to have farmers, we need to eat, we need to look after our primary producers."

The fourth-generation farmer produces six lines of leafy green vegetables 12 months of the year.

Winter production is done on their 600 acre Kalbar land near the Scenic Rim with the spring, summer and autumn growing undertaken on their 750 acre Amiens land in the the Southern Downs.

Ms Taylor said they sell to supermarkets and wholesale to central markets on the east coast of Australia and that the prices they were getting for their produce did not come anywhere near to covering costs.

"The input costs are up around 33pc to my knowledge and that's everything from chemicals, cartons, fuel fertiliser, electricity and labour costs," she said.

"Growers are still getting prices that were introduced in the 80s.

"Supermarkets have such a big percentage of the market, they seem to be able to manage the cost of everything and the price we get is not reflective of production costs.

"We have decided to grow less due to the increased costs of labour.

"There a lot of farmers that have exited the industry in the last few years, they are not coming back because a lot of them have nothing to come back to."

Queensland Fruit and Vegetable Growers CEO Rachel Chambers said growers were just looking for a fair deal and that despite the increased costs associated with producing a viable crop, growers are being paid similar prices from 30 years ago.

"We have been saying that this is the decision making year for our growers," she said.

"Most growers don't have the choice to move away - they are trapped to keep the relationship due to their huge market share in fresh produce," she said.

"As a sector, we acknowledge the vital role supermarkets play in the accessibility to food they offer Australians.

"Growers want behaviour change and to be paid fairly, not to boycott them. Yes, some growers have cut ties, but it's not a whole of industry move.

"Previously, growers would have had one good year out of three, more recently due to increased weather extremes and events, growers say it is more like a good year every five to seven years."

Farmers Pick founder Josh Ball provides an avenue for growers to sell on the produce that doesn't meet stringent supermarket criteria.

They provide a direct service to consumers in the south east Queensland, many of whom choose this option to support their local farmer.

"If it's bendy, blemished or two small or too big, it's completely fine," he said.

"We have a warehouse in Brisbane that services the Gold Coast and Sunshine Coast.

"As of this weekend we are expanding further north to Gladstone and Mackay and Rockhampton, and all the way down to south border."

Mr Ball said they wanted to create something that was viable for the farmers and try to achieve an equitable price for produce that might otherwise go to waste.

"Our mission is all about saving food out on farm and opening up to be something that is more accessible," he said.

"When you talk about profitability, it's businesses and farms and their inability to be able to sell their whole crop is a massive contributor towards that.

"If you leave with 30-40% of revenue left out on the field, it's a pretty big loss.

"We wanted to find a balance between what is good for a consumer and the ridiculous standards that are set by key players.

"It's consistency for the farmer, who plants something for harvest eight to 12 weeks and you don't know where the market will be."

Mr Ball said they looked to build relationships with farmers and agreed on a price or portion of crop buy up to remove the risk of the market.

"It is a market that has developed without any intervention for over 30 years...when you have such condensed power, in terms of the big supermarkets, the power imbalance can play against farms, many who can't stand up to that power," he said.

"I hope that there is something that comes out about how we address the power imbalance and just get fairer results for farmers and they are getting what they deserve for their work."