Australian farmers are facing a crisis with an unprecedented oversupply of truss tomatoes driving market prices to as low as $4-$5 per 5kg tray – just 80 cents-$1 per kilo. This is well below the break-even price of around $8 per tray (or $1.60 per kilo) that farmers need to cover their costs, leaving many at risk of devastating financial losses.
As growers bear the brunt of the glut, retailers' pricing practices are raising eyebrows. In some cases, truss tomatoes are being advertised for $3.90 per kilo – nearly a 400% mark-up from the 80 cents per kilo some farmers are receiving.
This disconnect between what farmers are paid and what consumers are charged underscores serious issues within Australia's food supply chain.
The crisis began earlier this year when a virus was detected on three farms in South Australia. Although the outbreak was quickly contained, movement restrictions remain in place, preventing South Australian tomatoes from entering Queensland and Western Australia. At the same time, significant expansions in high-tech glasshouse production in Victoria and medium-tech greenhouse production in South Australia have dramatically increased supply. Advances in growing techniques have boosted yields from 65kg to 85kg per square meter in just a few years, further flooding the market and exacerbating the oversupply issue.
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