The release of the Australian Government plans to put a price on carbon will potentially hit vegetable and potato growers around the country as the sector battles with further hikes in electricity costs, according to AUSVEG, the National Peak Industry body for Australia’s 9,000 vegetable and potato growers.

AUSVEG Chair, John Brent, said that there seems to be little understanding of the difficulties already facing growers around Australia who have been hit with massive energy increases before the tax was even announced.

“Electricity is critically essential to food production; without it irrigation can’t be operated and produce can’t be refrigerated. Any increase to electricity prices will have further adverse impacts on the bottom line of these businesses” Mr Brent said.

While agricultural emissions have been excluded from the carbon tax and the fuel excise has been left in place for a short while, the ‘storm’ for vegetable and potato production will be the increasing costs of power and in 2014 the increases in our transportation costs.

“The prospect of further substantial capital outlays for farm transport equipment in 2014 by growers shows little appreciation of the current reluctance of banks to provide the necessary finance facilities for most growing operations” said Mr Brent.

AUSVEG warned that overseas competitors will have another advantage when selling produce into the Australian markets.

“When you walk down the aisles of at least one major supermarket chain, you will now struggle to find any Australian produce amongst their frozen vegetable selection,” Mr Brent said.