AS CHILDREN across Australia flock to Woolworths to collect Jamie's Garden Adventure stickers, a 40 cents a crate levy suppliers have been asked to contribute for marketing has caused friction between food retail giant Woolworths and lobby group Ausveg.
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Ausveg denounced the fee, which Woolworths has reiterated is voluntary, and asked for Jamie Oliver to speak out on the issue.
Jamie Oliver Retail Group chief executive Guy Mottershead said in a letter to Ausveg last week that while Mr Oliver was concerned about producers enduring financial struggles, the campaign was ultimately aimed at increasing fruit and vegetable sales - and thereby give greater support to producers.
"In our discussions with Woolworths over the last few days, they have made it very clear to us the contributions requested from growers and farmers on this occasion were voluntary and that very many of their suppliers were happy to contribute, understanding that increased marketing and promotion for fruit and vegetables would in turn mean greater sales," Mr Mottershead said.
Ausveg public affairs manager William Churchill said the 40c fee would be too much to bear for some growers, taking profits from the black to the red.
An underlying issue for the vegetable industry was highlighted in recent data from the Australian Bureau of Statistics, which demonstrated while vegetable yields generally increased in the 2012-13 year, production costs have risen, and average cash incomes have dropped.
According to Ausveg, estimates are the average vegetable business averaged a cash income of $103,000 per farm in 2012-13, which was a 29pc drop from 2005-06 - and average vegetable business profits have fallen.
Entrepreneur Dick Smith said Australia's economic system was at the core of the challenges faced by Australian growers.
"Our economic system requires perpetual growth," he said, and requires increasing profits each year.
He said supermarkets were driven by this perpetual growth model.
They often had to source cheaper products from overseas with which Australian growers needed to compete.
Yet the outlook appears positive from an export perspective, he said.
"The middle class in China is more interested in high quality food, and I think the rising middle class in China represents a huge potential for exports for Australian growers."
Ausveg manager of industry development and communication Andrew White said a lot of work had been going into export market development.
"We are particularly looking at Asia, and 40 buyers and importers from key Asian countries are in Australia this week (for the 2014 Produce Innovation Seminar in Cairns, Queensland) and we will be showing off the high quality produce we think will be attractive to them."
Nick Heydon
The Land's property editor.
The Land's property editor.
