Ausveg has cautioned against a false sense of security as the impacts of the Middle East conflict continue flowing through Australia’s vegetable industry, leading to continuing widespread uncertainty for vegetable growers and future supply of Australian-grown vegetables.
An updated Ausveg survey of almost 200 growers taken two-and-a-half months into the conflict, shows production cost surges remain unsustainably high, while serious questions linger over the future availability of critical farming inputs.
Key findings from the latest survey include growers’ median diesel costs have increased by 61 per cent since the start of the conflict. Growers are facing average fuel surcharges on freight of more than 35 per cent. Growers’ median fertiliser costs have increased by 51 per cent since the start of the conflict.
Concerns over the supply of horticulture fertiliser mixes continue to be raised by some growers and they report packaging, PVC piping and other irrigation fittings are increasingly in short supply, with shortages and price surges also reported for key inputs like lubricants, tyres and steel.
Overall grower production costs increased by an average of 28 per cent since the start of the conflict, and were as high as 79 per cent for some growers.
Higher costs and continuing widespread uncertainty are still leading vegetable growers to adjust their plans, with 24 per cent in the May 2026 survey having reduced planting schedules, and 30 per cent actively considering their planting programs. On average, growers who reduced planting did so by 23 percent.
The need for growers to receive viable farmgate returns remains a pressing priority with growers also indicating they have only been able to recover an average 17 per cent of recent production cost surges from their customers. Deflated wholesale markets leading to downward pressure on grower returns are also contributing to viability concerns.
However, lower wholesale prices are continuing to offer good value for consumers, with recent data showing vegetables on average costing just 74c per serve, and retail prices for staple crops such as carrots as low as 19c per serve.
Ausveg CEO Michael Coote said the Middle East conflict’s impacts are continuing to be felt across the economy, and the latest survey shows Australia’s vegetable growers are continuing to face a unique set of viability-threatening challenges.
“While the immediate, acute impacts that hit at the start of the conflict represented a perfect storm for vegetable growers after years of challenging business conditions and tightening margins, almost three months into that conflict, we may be in the eye of that storm,” said Coote.
“Reactive government measures to secure supplies of critical inputs like fuel and fertiliser may have temporarily blunted some of the more acute shortage concerns from earlier in the conflict but how long that lasts is very unclear, as unsustainably elevated production costs persist, and uncertainty over future input availability remains high.
“While Australian vegetable growers are committed to feeding Australian consumers, many have been forced to adjust their planting schedules and plans in response to the difficult operating environment. The longer uncertainty continues, the longer the impacts on supply of Aussie-grown vegetables available for Australian consumers will be felt, with growers indicating the effects of decisions they are making today, may not be felt for weeks, or months down the line.
Coote said Australian growers needed to be prioritised in any ongoing government support, given the industry’s value to the nation’s food supply.
“It is critical that the government confirms Australian vegetable growers will be prioritised for access to critical inputs as a sector of national importance,” said Coote.
“It is equally important that all commercial fresh produce buyers re-affirm their commitment to an Australian vegetable industry that is critical to Australia’s food security by considering all evidence-based requests for viable returns from growers in good faith, and prioritising Australian produce – whether fresh, frozen or processed – over cheap, inferior frozen and processed product.”
