Australia: Vegetable cash costs skyrocket
The discussion paper draws from survey data produced by the Australian Bureau of Agriculture and Resource Economics and Sciences (ABARES).
Since 2005-06, average total cash costs for vegetable growers have increased by approximately 65pc (in real terms), while average vegetable production per farm has decreased marginally by 4pc.
“Reducing and managing vegetable growers’ costs of production is essential for increasing growers’ returns and ensuring the sustainability of the vegetable industry,” AUSVEG spokesperson Kurt Hermann said.
The discussion paper also found large growers (in terms of hectares produced) are able to produce vegetables at lower costs per tonne of production compared to smaller growers.
The industry-driven report also investigates some of the major costs involved in vegetable production. Major costs include hired labour, which represents approximately 17pc of vegetable growers’ total costs, and fertiliser and energy which contribute 9 and 8pc respectively.
Source: AUSVEG
