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Growers say they miss out
29 Jul 2004
Fruit and vegetable prices may keep on fluctuating on the consumer price index, but growers say they rarely see movements in the farm-gate prices they receive.
In the June quarter CPI, vegetable prices dropped 11.4 per cent and fruit prices were down 3.2 per cent, which was attributed to the easing of drought conditions in growing areas. In the March quarter, tightening supply due to drought led to a 13 per cent rise in vegetable prices and a 4.9 per cent rise in fruit prices.
The Victorian Chamber of Fresh Produce said it expects fruit and vegetable prices to remain relatively stable over coming months. But Queensland Fruit and Vegetable Growers said producers never see the CPI price changes. It goes into the middle and end of the chain but doesn't go to the farm gate, CEO Jan Davis said. The Australian Vegetable and Potato Growers' Federation said a producer receives about $1.50 for a cauliflower - around the same as in 1975. But at the retail end, the price has risen from about $2 to $3.80.
Fruit and vegetable producers say the prices they get are being squeezed by a small number of buyers, which includes the major supermarkets.
Australian Financial Review, 29/7/04.
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