CEO report UPFRONT

MY sincere thanks go out to all those who have generously met with me, providing crucial on-theground insights into the dynamic Western Australian Horticulture industry. A special acknowledgment is also due to the small but exceptionally dedicated team at vegetablesWA, who tirelessly work to support WA growers.

Post-election landscape and promising signs

Since our last issue, we have witnessed both State and Federal elections. While, at the time of writing, the final results in a few close seats are still pending, it is unequivocally clear that the Australian Labor party has significantly increased their mandate to lead the nation forward. It is important to remember that specific election promises require time for development and implementation and can naturally evolve.

Labor has articulated a clear commitment to addressing climate change, a critical issue with profound implications for the future of horticulture. Policies focusing on emissions reduction, the transition to renewable energy sources, and the promotion of sustainable land management practices will directly shape our horticultural practices and their long-term viability. For instance, investments in renewable energy could help offset rising energy costs for irrigation, while sustainable land management practices will be crucial for soil health and water conservation.

Focus on food security and industry needs

It has been encouraging to hear robust discussions surrounding food security, escalating farm costs, essential regional infrastructure development, and persistent workforce shortages throughout this recent election period. The proposed National Food Security Plan — a key priority advocated by farmers and the broader food supply chain — now appears certain to progress, which is indeed welcome news for our growers. This plan, we hope, will outline concrete strategies to strengthen our domestic food production and resilience.

Further encouraging are the ongoing discussions concerning a range of measures designed to bolster long-term national food security.

This includes the crucial development and urgent implementation of a comprehensive national food security strategy, alongside initiatives aimed at boosting our sovereign capability in food production and the manufacturing of key farm inputs, reducing our reliance on volatile global supply chains.

Biosecurity and regulatory burden: areas needing action

While there were positive statements made regarding the critical importance of strengthening biosecurity measures at our borders to prevent the entry of devastating pests and diseases, and the need to cut unnecessary regulation and red tape, these pronouncements lacked concrete commitments. We did not see any proposals for permanent and increased biosecurity funding to safeguard our industry, nor any clear plan to undertake a thorough assessment of the cumulative compliance burden that the horticulture sector in WA is currently shouldering. Growers currently navigate a complex web of regulations from various authorities, adding significant and often unquantified costs to their operations.

Critical gaps: workforce, infrastructure, and costs

Furthermore, there has been limited discussion regarding meaningful progress on crucial industrial relations reform that acknowledges the unique needs of agriculture, the establishment of fair and efficient visa settings for essential farm workers, and the vital need for proper and sustained investment in our regional road networks and essential infrastructure. Moreover, we still await a serious and concerted effort to roll back the often-excessive red and green tape that hinders productivity and to tackle the escalating input costs and pressures driven by global economic factors, domestic market volatility, and the increasing impacts of climate change.

Without this type of positive and industry-led change, Western Australia’s dedicated vegetable growers and the broader vegetable industry will continue to face significant struggles in a competitive market.

This vital initiative has the potential to unlock a remarkable $4.7 billion Australia-wide increase in net economic benefits. This includes a substantial $3.3 billion boost to the entire vegetable supply chain, the creation of an estimated 13,000 new jobs across the country, and significant healthcare budget savings of around $1.4 billion through improved public health. This issue remains a key and urgent priority for AUSVEG, and we wholeheartedly welcome this crucial support and initiative to lift vegetable consumption across the nation.

Positive development: mandatory food and grocery code

On a separate but equally important note, the Food and Grocery Code has now become mandatory for Australia’s largest supermarkets and grocery wholesalers, effective from 1 April 2025. This code establishes clear rules governing how these major retailers and wholesalers negotiate and contract with their suppliers, including our growers. It mandates written supply agreements, requires them to act lawfully and in good faith towards their suppliers, and crucially, protects suppliers from facing retribution for exercising their rights under the code. Large supermarkets and wholesalers now face significant financial penalties for any contraventions of this updated code.

The changes apply to all retailers and wholesalers that earned over $5 billion from their supermarket or grocery wholesaling businesses in the previous financial year.

Industry-led solutions: boosting vegetable consumption

Within our industry, a significant and proactive initiative is emerging from AUSVEG with the ambitious goal of increasing domestic vegetable consumption by one serve per person per day. This commitment involves a substantial $125 million long-term national multi-channel behavioural change campaign, with an investment of $25 million per year over five years.

Suppliers to these major players are automatically afforded protection under the code. The Australian Competition and Consumer Commission (ACCC) will now have the authority to issue infringement notices and pursue court action seeking penalties against businesses that breach the code. While we sincerely hope our dedicated growers will not need to resort to this avenue, it provides a crucial layer of protection and assurance for our entire industry.