Orange and Cabonne farmers question where fruit profits are going

According to NSW Farmers the cost of vegetables inflated by 5.5 percent in the June quarter, while the consumer price index on fruit lifted by 4.7 percent.

Orchardist Peter West grows apples at Canobolas and at Nashdale and said due to good conditions, there is a "heavy" supply of apples Australia wide.

"All the apples around Orange are pretty good quality and all over Australia." Mr West said.

"There's a lot of fruit around and we won't get big money."

However, he said that during the COVID crisis more people were buying apples.

"We went OK with the cherries, there was a bit of rain damage," Mr West said.

He said COVID lockdowns in Sydney also affected cherry purchases this year although they have an export market for cherries that they don't have for apples.

Orchardist and NSW Farmers Horticulture Committee chairman Guy Gaeta said the noticeable price hikes at retail level are creating mystery around where the profits are going, because it's not to farmers.

"Farmers are not reporting changes to their payment from wholesalers, driving speculation that the more powerful elements of the supply chain, including major retailers and wholesalers, are pocketing the profit," Mr Gaeta said.

He said red delicious apples are selling for $3.90 per kilogram at one leading supermarket chain, while they are going for 83 cents per kilogram at the farm gate.

"Supply chain power inequities are a known challenge for many fresh food farmers, who are price takers due to the perishability of their product," Mr Gaeta said.

"We know a lot of people are doing it tough right now, and our heart goes out to the restaurants and small businesses who are suffering. But the major retailers and wholesalers aren't struggling right now, and it's irksome to think they might be capitalising from rising demand for food with the closure of other providers such as fresh food markets."

Mr Gaeta said the price hikes are likely attributable to a number of factors, including labour shortages.

"We need to see the Horticulture Code strengthened to increase market price transparency," he said.

"Growers are at the coalface of a number of challenges at the moment, including the significant shortages in labour supply caused by ongoing border restrictions amid COVID-19.

"Many growers are in a position where they need to recoup their losses, and it's heartbreaking for them to see someone else pocket the increased profit for their produce."

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: