YOUR INDUSTRY
RISING COSTS CONCERN THE COUNTRY’S VEGETABLE GROWERS Glenys Christian
Input price increases are top of the list when it comes to vegetable growers’ concerns, closely followed by labour shortages and compliance issues. “There’s a sense of nervousness I’ve never seen before,” says Jay Clarke, a director of the Horowhenua’s Woodhaven Gardens. “There’s lots of clouds on the horizon.” He points to a 300 percent increase in freight costs in recent years, crate costs going up and labour rates rising. “And we’re very concerned about ongoing consumer support. If a lettuce is $4 or $5, will people continue to pay that?” Jay Clarke from Woodhaven Gardens
The cost of complex compliance requirements is a real hurdle, especially for smaller growers If not, Jay says there’s the risk of market contraction, growers exiting their businesses and New Zealand losing its food production capacity. “And that will be hard to get back.” While consumers will happily pay $5 or $6 for a flat white every day, Jay says they won’t spend that on a head of green cabbage, which will feed a family for several days.
$5-6
FOR ONE FLAT WHITE COFFEE
$5-6
A HEAD OF CABBAGE THAT FEEDS A FAMILY FOR DAYS
“That represents really good value.” Jay believes the government needs to look at alternative ways of supporting those in lower socio-economic groups. “No one has seen costs move like this before. It’s unprecedented.” 40 NZGROWER : MAY 2022
Nelson grower, Ben Conning, says the cost of labour has “gone through the roof”, due to high general demand. He also estimates fertiliser costs have gone up by 50 percent with freight rates increasing as well. “The scary thing is that we’re flying blind because our costs have increased so much.” Ben’s answer six to eight months ago was to start selecting crops he would leave in the ground rather than harvest. “We’re not cutting spinach because the biggest cost is harvesting it and we’re price-takers,” he says. “Leeks are another crop where labour costs are high, and the lettuce price has been in the gutter for the whole season.” Compliance costs are also inching up. While Ben says larger growers can wear these, there’s no incentive for younger growers to get into the industry, particularly in an area where good growing land can cost between $200,000 and 250,000 a hectare. Pukekohe Vegetable Growers Association (PVGA) president, Kylie Faulkner, says Pukekohe growers are tired of the government throwing environmental regulations at them which seem unworkable. “We are also facing labour issues and cost increases, but we’re no different to growers in other parts of the country.” Waikato growers say they are finding the number of local government submissions they’re required to make and the compliance issues they’re facing a struggle, at a
