Vegetable growers warn of production hit if minimum wage increases again

Australians will have fewer fresh vegetables on supermarket shelves if the minimum wage is increased again, industry groups claim. Major business groups say the Federal Government’s push for the Fair Work Commission to pass on another above-inflation wage rise is excessive, countering by proposing an increase of between 2.5 per cent and 3 per cent. The commission is considering the annual wage case, having increased the minimum wage by 4.6 per cent in 2022 and 5.75 per cent at 2023, putting it now at $882.30 per week. But the peak group for vegetable growers has argued increasing wages and less available labour have put the viability of the vegetable industry under increasing pressure, with the number of grower businesses to keep declining. “The consequences of additional wage increases are likely to lead to a decline in fresh vegetable production, with negative flow on effects to Australian consumers,” AusVeg chief executive Michael Coote told the commission in a submission made public on Wednesday. Mr Coote said that four years on from the first pandemic price shocks, fertiliser prices were still high given international market volatility, while chemical costs had tripled and diesel and energy costs were also higher with little to no reprieve forecast. Brassica vegetables, such as cabbage, kale, cauliflower, broccoli and cabbage were particularly vulnerable to labour costs given they could amount to more than 60 per cent of vegetable costs given few mechanical options for harvesting. Mr Coote said 55 per cent of recently surveyed growers are experiencing workforce shortages and 85 per cent do not expect improvement, or worsening labour conditions. He said nearly four in ten of growers were considering leaving their business within the next year due to concerns about its viability, with high input costs and poor retail pricing the key reasons. AusVeg members grow and supply 98 per cent of the fresh vegetables consumed by Australians each year. Separately, the Pastoralists and Graziers Association of WA warned another hike to the minimum wage would be a productivity-killer. “We can ill afford another forced increase in wages for every worker in industries that service agriculture, as the flow on effect will be immense — and then there is the added cost of paying staff in our industry,” said president Tony Seabrook, citing forecasts that broadacre farm average income was expected to fall 41 per cent this financial year. Submissions to the Fair Work Commission close on Thursday, with consultations to kick off from mid-May.