Australian agriculture is currently experiencing an oversupply of truss tomatoes, leading to market prices plummeting to $4-$5 per 5kg tray, translating to roughly 80 cents-$1 per kilo. Box Divvy, a network linking farmers with food manufacturers, has highlighted this issue, attributing the glut to the combination of the tomato brown rugose fruit virus outbreak in August and the surge in high-tech glasshouse production.
Matt McInerney, a farm manager at K-Fresh in Virginia, South Australia, described the virus impact as "a tough blow," noting that even though the virus is under control, the restrictions have resulted in a surplus of produce. This surplus has led to a significant drop in prices, making it challenging for farmers to sustain their operations. The disparity between what growers receive and the retail price, which can be as high as $3.90 per kilo, has sparked concerns about fairness within the food supply chain.
Box Divvy's co-founder, Anton van den Berg, expressed concerns over the pricing dynamics, emphasizing the need for a fair system that does not disadvantage farmers. In response, Box Divvy has initiated a program to purchase truss tomatoes at $8 per tray directly from growers like K-Fresh, offering them to their members at $10 for a 5kg tray. This initiative aims to alleviate the glut by encouraging bulk purchases of fresh, Australian-grown tomatoes, priced lower than imported canned tomatoes at $2 a kilo.
Source: insideFMCG