Horticulture giants warn fruit and vegetable prices could rise due to labour shortage - Sydney Morning Herald

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The working holiday maker program accounts for about 80 per cent of the harvest labour workforce, and the industry is concerned that COVID-19 border closures and restrictions could severely disrupt the number of backpackers able to work in Australia.

Tens of thousands of backpackers have left Australia this year and the industry fears this trend will continue.

Australian farmers need to continue to secure a workforce to harvest fruit and vegetables for Australian families.

Michael Rogers, CEO of Australian Fresh Produce Alliance

The Australian Fresh Produce Alliance has proposed the $1200 payment to harvest workers only be paid after they complete three months of work. The group has also called for a $1200 induction support payment for businesses who hire workers under this arrangement, also paid after three months.

"The AFPA has obtained data from member companies, other growers and labour hire companies that indicates from March 2020 to June 2020 these companies received 23,000 inquiries for work. Only 8 per cent of these inquiries were made by Australian citizens and permanent residents," the submission says.

The economic calculations about job losses and prices come from modelling by Deloitte Access Economics, commissioned by the Australian Fresh Produce Alliance. The 127,900 job loss estimate includes lost harvest worker roles, as well as the impact on other sectors from a dramatically smaller harvest including in transport, food manufacturing and retail.

The Australian Fresh Produce Alliance fears that without a backpacker labour force, fruit and vegetables would be left to wither and rot, or crops would not be planted because of labour force concerns.

It is also asking for the number of harvest workers coming to Australia via the Seasonal Worker Program and Pacific Labour Scheme increased from 12,000 to 15,000 per year.

"Australian farmers need to continue to secure a workforce to harvest fruit and vegetables for Australian families. And we have a current and very real challenge that we will have a shortage of workers," said the group's chief executive Michael Rogers.

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Michael Simonetta, chief executive of fresh produce giant Perfection Fresh, said backpackers had been a vital horticulture industry workforce for years.

"Now it's absolutely critical to us and the horticulture industry to harvest the crops that we grow, to feed Australia and our neighbours to the north," he said.

Asked what would happen if working holiday maker harvest workers disappeared, Mr Simonetta said: "Our industry would be devastated. We wouldn't be able to pick all the crops that growers are labouring over and investing a lot of money in."

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July 30, 2020 at 08:54AM
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Horticulture giants warn fruit and vegetable prices could rise due to labour shortage - Sydney Morning Herald

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