In central western New South Wales (NSW) A significant shift has taken place within the asparagus industry, which dates back to 1950s, the time when the family of Ed Fagan began growing asparagus in the vicinity of Cowra. The changing dynamics of the market and the rising cost of labor and the price pressures that are imposed by supermarkets of all sizes, caused Fagan to stop producing asparagus and switch to other varieties of vegetables. The decision is part of a larger development that affects the asparagus business in general, with NSW earlier being an important source of the country’s harvest and now being dominated by Victoria.

A shift in the industry towards a move away from the cultivation of asparagus is also evident in AusVeg information, which shows the reduction of 50% in asparagus production, which is expected to reach 5,500 tonnes in 2023, compared to the year 2019. Its labour-intensive nature, needing constant care throughout the pre-harvest time of three months is a major factor in the labor costs accounting for 85% of the overall production costs. Despite this the retail price at big retailers haven’t seen an equivalent increase. the current price structures being deemed insufficient for growers.

Supermarket chains like Woolworths as well as Coles have been vocal about their pricing practices, stressing the effect of various factors such as the weather, seasonality demand, supply and weather on prices in the market. But they have also noted that they have also been criticized by the NSW Farmers Horticulture Committee has expressed concerns about the sustainability of farming asparagus with regards to the unbalanced returns for farmers compared to the retail price.

The upcoming introduction of a brand new grocery conduct code aims to assure fair treatment of the suppliers of major supermarkets, but there are still doubts about its effectiveness for perishable items producers. In parallel, the world asparagus market is seeing an increase in imports of countries such as Peru as well as Mexico due to lower costs for labor which could alter demand dynamics.

The shift has been associated with a drop of Australian exported asparagus products, specifically towards Japan the country’s largest international market. This has more frequently turned towards Mexican as well as Peruvian sources of supply during the outbreak. It is a challenge to regain the market share of Japan is a sign of the challenges faced by Australian asparagus producers, amid the changing landscape of regulatory and market.

Source: ABC News