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Home News Primary Producer

The vegetable cost squeeze

by
15 June 2026
in Primary Producer
The ongoing impacts of the conflict in the Middle East are continuing to hammer the region's agricultural sector, with local farmers being warned against a false sense of security.

The ongoing impacts of the conflict in the Middle East are continuing to hammer the region's agricultural sector, with local farmers being warned against a false sense of security.

East Gippsland’s vegetable growers are being cautioned against a false sense of security as the ongoing impacts of the Middle East conflict continue to hammer the region’s

agricultural sector, creating widespread uncertainty for local family farms and the future supply of fresh produce.

A fresh impact survey of nearly 200 growers released this week by industry peak body AUSVEG reveals that local production cost surges remain unsustainably high, while serious questions linger over the future availability of critical farming inputs.

For the Lindenow Valley and surrounding East Gippsland growing footprints — famed for supplying a vast portion of the nation’s salad mixes, brassicas, and root vegetables — the figures paint a stark picture of a worsening farmgate crisis.

According to the May 2026 data, overall grower production costs have jumped by an average of 28 per cent since the start of the conflict, with some operations tracking surges as high

as 79 per cent.

The primary drivers hitting regional businesses include median fuel prices increasing by 61 per cent since the start of the conflict, while growers face average fuel surcharges on transport of more than 35 per cent. Furthermore, median fertiliser costs have spiked by 51 per cent, with major concerns continuing to be raised over the supply of specialised horticultural mixes, including potassium ammonium sulphate and calcium nitrate.

AUSVEG chief executive officer Michael Coote said that while reactive government measures to secure fuel and fertiliser had temporarily blunted acute shortages seen earlier in the year, the industry is now sitting in the

“eye of the storm”.

“The longer uncertainty |continues, the longer the impacts on supply of Aussie-grown vegetables available for Australian consumers will be felt,” Mr Coote said.

“The effects of decisions growers are making today may not be felt for weeks, or months down the line. To ensure Aussie families continue to have access to affordable, fresh and high-quality domestically-grown vegetables, AUSVEG urges all consumers to buy more

Aussie-grown vegetables to increase demand and support viable returns.”

The industry body is currently lobbying the Federal Government to formally recognize the vegetable sector as an area of national importance, ensuring growers are prioritised for access to fuel and critical inputs.

AUSVEG has also called on major commercial supermarket buyers to review evidence-based price requests from local growers in good faith, and to prioritise Australian-grown fresh and processed lines over cheap, imported frozen alternatives.

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