Falling fruit and veg prices mask increasing pressure on growers

Consumers are feeling the pressure at the checkout, but the latest inflation data shows fresh fruit and vegetable prices are actually falling.

QFVG CEO Scott Kompo-Harms said the latest data was good news for consumers looking for affordable, fresh and healthy meal options, but painted a very different picture for growers.

"In July fruit and vegetables combined were making a negative contribution of 0.0187 percentage points to Australia's annual inflation rate, down from a positive contribution of 0.1247 percentage points in April 2025," Mr Kompo-Harms said.

"Compare that with meals out and takeaway foods, which made a 0.3197 percentage point contribution to annual CPI in July.

"Fresh fruit and vegetables are an affordable and nutritious choice. That's good news for consumers, but for growers, it's a very different story with the cost of producing that food continuing to rise.

"Growers are facing higher costs across almost every part of their business, including labour, energy, fertiliser, freight, compliance and other farm inputs.

"It is incredibly frustrating for growers to be going backwards in an environment where some of the largest businesses in the food supply chain are reporting significant profits.

"Consumers see what they pay at the checkout, but that doesn't tell the story of what the grower receives at the farm gate or what it costs them to produce that food.

"When we see significant profits being reported further along the supply chain at the same time, we have to ask where the money paid by consumers is going and whether enough of it is making its way back to the farm gate."

Mr Kompo-Harms said growers were not asking consumers to pay more for fresh produce.

"Growers want fresh food to remain affordable for Australian families. But affordability cannot come at the expense of the viability of the people producing it," Mr Kompo-Harms said.

"Everyone needs to be able to make a sustainable return, including the farmer growing the food.

"Consumers want affordable food and they want to support Australian farmers. We need a food system that allows both to happen."