Fruit and vegetable prices set to soar by 60 percent as border closures shut out seasonal workers – as farmers call for subsidies to boost wages and lure the unemployed
- Fruit and vegetable prices are set to jump by up to 60 per cent later this year
- The COVID-19 pandemic forced thousands of backpackers out of Australia
- As result, there are mass amounts of job vacancies in the horticultural industry
- Consumers are warned they may have to pay 60 per cent more for fresh food
Fruit and vegetable prices are set to soar by as much as 60 per cent as the coronavirus border closures lock out seasonal workers, leaving farms to either lift wages to attract local workers or leave the product unharvested.
The workforce is usually made up of young people from Europe and South East Asia on working-holiday visas but that labour source has largely dried up as they cannot enter the country, and many who were already here have been forced to return home.
The working holiday visa program accounts for 80 per cent of the harvest labour workforce.
Fruit and vegetable prices are set to soar by 60 per cent after the coronavirus saw a significant drop in horticultural workers undertaking harvest work (stock)
Domestic border closures and restrictions also mean the industry cannot use the itinerant workers who move between states from harvest to harvest, according to the Australian Fresh Produce Alliance (AFPA).
'The reduction in workers we're seeing as a result of COVID-19, plus the issues we're finding trying to move workers across production locations is making it even more difficult for fruit and vegetable farmers to secure the workforce needed to continue to supply all Australians with fresh food,' AFPA chief executive Michael Rogers said.
A shortage of food due non-harvesting, or higher wage bills will result in higher prices, with Mr Rogers saying consumers should brace for spikes towards the end of the year, with November and December expected to be the most challenging.
AFPA has lobbied government to provide one-off $1,200 payments to lure the growing number of unemployed Australians in cities to move to farms for harvest work.
'Australians have always been encouraged to do this kind of work, but despite high unemployment we still see application rates from Australians for fruit and vegetable picking roles at 8 per cent or even lower,' Mr Rogers said.
There are currently only 70,000 harvest roles in Australia, with the usual number of backpackers sitting at 140,000.
As a result of the COVID-19 pandemic forcing thousands of backpackers out of Australia, the labour sources have dried up (stock)
Consumers are being warned they may have to pay 60 per cent more for fruit and vegetables as the working holiday visa program accounts for 80 per cent of the harvest labour workforce (Groceries pictured in Sydney)
On Tuesday it was announced that farm workers from Vanuatu will be brought into Australia to pick mangoes despite an ongoing travel ban on overseas arrivals.
Up to 170 of the foreign labourers will be brought into the Northern Territory ahead of next month's harvest despite burgeoning levels of local unemployed, and more will follow if the trial is successful.
All people coming to the country will face two weeks in quarantine, while the NT chief health officer will have final approval on recruitment.
Faced with the prospect of lifting wages to attract local workers, the industry will instead be able to keep production costs low by importing temporary staff.
'The Northern Territory's mango producers in particular are facing a rough road ahead without the workers they rely on for their harvest,' Federal Agriculture minister David Littleproud said on Tuesday.
Mango farm trees at Coastal Plains Research Farm, 60km east of Darwin in the Northern Territory
'That's going to come to a head when the mango harvest starts in earnest in September.'
Mr Rogers said he welcomed the announcement from Minister Littleproud and appreciated the commitment 'the government has shown to finding solutions to workforce challenges'.
'Trials like this are important so industry can work with government to find practical solutions to any labour shortages,' he said.
'It is important to understand that harvest roles in industry support regional economies, full-time ongoing employment of Australians but most importantly underpin access to fruit and vegetables for all Australians.'
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