Horticulture NZ warns vegetable prices will rise due to spiralling costs

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Vegetable prices will continue to increase if the Government does not support growers to find ways to reduce the costs of growing, Horticulture New Zealand says.

HortNZ president Barry O'Neil said there was "a crisis" developing in commercial vegetable production in New Zealand.

"Input costs have soared over the past 12 months, not the least being the cost of fuel."

While reducing petrol excise duty by 25 cents a litre and road user charges for three months was a positive step for most New Zealanders, it had no impact on the significant increase in the cost of diesel for use on the farm, orchard or market garden, O'Neil said.

Between December 2021 and March 2022, the cost of diesel has increased from $1.67 a litre to $2.41 a litre.

"This increase - combined with significant cost increases in nearly all areas, including labour, seed, fertiliser, freight and compliance - is putting some growers perilously close to going out of business."

Unless consumers were prepared to pay for the increased costs of growing vegetables, "there will be an exodus from growing vegetables in New Zealand," O'Neill warned.

If growers shut up shop, vegetable prices would increase even further due to supply shortages, which risked a healthy, staple food being priced off the table for many New Zealand households, he said.

O'Neill called on the Government to safeguard food security by acting to reduce the spiralling cost of growing vegetables in New Zealand.

"Ultimately our health system - under immense pressure from Covid - would benefit from any cost reduction because it will enable all New Zealanders to continue eating nutritious vegetables, safeguarding their health and wellbeing."