A new report paints a tough climate for vegetable growers.
New research from AUSVEG has for the first time quantified the massive cost and scope of the $213 million annual compliance, regulatory and red tape burden hampering the productivity and profitability of Australian vegetable growers and threatening the long-term viability the industry.
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The results of the most recent AUSVEG Industry Sentiment Survey from July show two-in-five vegetable growers are actively considering leaving the industry within the next year due to challenging business conditions, and that a further two-in-five would follow suit if they had a viable exit strategy.
The proportion of growers actively considering exiting has jumped from an average of one-in-three since January 2025.
The latest Industry Sentiment Report reveals a continuation of the severe operating challenges consistently identified in AUSVEG’s six-monthly surveys of vegetable growers since 2023.
A lack of operating profit for capital improvement, expansion and innovation; compliance burden; input cost increases; poor retail pricing; and increased labour costs have again been identified as the key issues leading growers to contemplate their future.
These challenges are contributing to declining profitability across the industry, with 62 per cent of surveyed growers in July indicating they were financially worse off compared to 12 months ago, and 53 per cent expecting to be worse off in a further year.
A summary of key findings includes:
The cost of compliance for vegetable growers has ballooned to an estimated $213 million per annum across the industry.
Compliance costs account for four per cent of total average vegetable growing business costs, against average earnings before interest, tax, depreciation and amortisation (EBITDA) of about nine per cent.
A 25 percent reduction in compliance costs would equate to savings of about $53 million per annum across the industry, representing a meaningful opportunity to improve profitability and productivity for vegetable growers across the country.
Compliance and certification requirements for Australian vegetable growing and on-farm packing have increased significantly in number, scope, and complexity over the past 30 years, with compliance now covering around 50 separate areas of business operations.
Almost nine-in-10 growers reported negative impacts of compliance audits on stress levels and mental wellbeing.
More than four-in-five rowers reported opportunities for improvement across key compliance areas.
AUSVEG chief executive officer Michael Coote said as sentiment in the vegetable industry has plummeted and remained at record lows, Australian vegetable growers have increasingly called out that overwhelming compliance burden is taking an unsustainable toll on their productivity, profitability and future viability, as well as their mental wellbeing.
“Compliance isn’t just about government requirements, but also the raft of audit, certification and other obligations imposed by service providers, supply chain partners, retailers, regulatory bodies and industry codes of conduct,” Mr Coote said.
“These have continued expanding in scope, volume, and complexity, leading to duplication and snowballing time and cost pressures.”
Federal Nationals leader David Littleproud said the report shows Australia’s food security is at risk, as two-in-five growers consider leaving the industry.
Mr Littleproud said the decision to walk away is being affected by Labor’s anti-agriculture policies, including red tape impacting productivity and profitability.
“Every Australian should be worried that 40 per cent of the industry is considering leaving within the next year, with a further 40 per cent saying they would also quit if they had a viable exit strategy,” he said.
“Losing 80 per cent of our growers would be disastrous. When supply goes down, prices go up.
“So families will bear the burden of Labor destroying the agriculture industry at the supermarket checkout.”
