The hidden cost of cheap asparagus as grower leaves crop to rot

The hidden cost of cheap asparagus as grower leaves crop to rot

Ed Fagan’s family first started growing asparagus near Cowra, in the New South Wales central west, in the 1950s.

Seven decades later, rising costs of labour combined with pricing pressures from the major supermarkets have led Mr Fagan to leave his crop to rot and turn his attention to other vegetables.

“There were periods where we didn’t grow asparagus, but it is something that this farm was built on,” he said.

“It was looking like very low margin, high risk, and a huge amount of effort for very little return.

“It has been a long time coming.”

Ed Fagan’s family has been growing asparagus since the 1950s in NSW. (ABC News: Stephen Stockwell)

Mr Fagan was the largest asparagus grower in NSW but said almost all of Australia’s supply of the vegetable now came from Victoria. 

He is not the only one turning his back on asparagus.

Figures from industry group AusVeg show production of the crop fell by almost 50 per cent since 2019 to 5,500 tonnes in 2023.

Asparagus is a labour intensive crop to produce, with the vegetable requiring daily attention for three months leading up to harvest.

Ed Fagan is turning his attention towards other crops such as beetroot. (ABC Central West: Hamish Cole)

“Eighty five per cent of the cost of asparagus is in the labour at harvest,” Mr Fagan said.

“You have people passing through the crop every single day, it’s raining, it’s a public holiday, it doesn’t matter. People have to be in there harvesting.”

The rises in expenses have not been passed on to consumers at the major supermarkets, according to Mr Fagan.

“Anything under $2.50 a bunch at retail is under the cost of production. It is not sustainable,” he said.

“The price of asparagus now is roughly what it was in 2013, and yet the cost of labour, energy, and the associated cost of growing the crop have more or less doubled.”

Asparagus is currently on sale at major supermarkets for about $4.50 a bunch.

During the main harvest season in Australia between September and December the vegetable was regularly on sale for $2.

Supermarket response

In a statement provided to the ABC, Woolworths defended its pricing of asparagus. 

“When we buy directly from farmers we pay the market price which can vary due to weather, seasonality, supply and demand,” a spokesperson said.

In a statement, Coles said it was committed to providing “quality Australian-grown fresh produce where possible”.

Asparagus was sold for $2 a bunch during peak harvesting season. (ABC Central West: Hamish Cole)

The New South Wales Farmers horticulture committee chair Johanna Brighenti said the price of asparagus was forcing growers to leave the sector. 

“What we don’t see at the other end as consumers is that the farmer is getting far, far less than what is on that supermarket shelf,” she said.

“We’re seeing growers now that are just leaving the industry because they can’t profit out of it.”

In April, a new grocery code of conduct will come into place, imposing obligations on major supermarkets to treat their suppliers fairly or face hefty fines.

Johanna Brighenti (left) spoke at a senate inquiry into supermarkets. (ABC Central West: Hamish Cole)

But Ms Brighenti said she did not believe it would make much difference for producers of perishable goods such as asparagus.

“You have got to move that product quickly. In the end, when you have very few buyers, you have got no choice but to take that price,” she said.

Imports and exports

Peru and Mexico are the largest exporters of asparagus in the world largely due to their cheaper labour.

Mr Fagan said consumers should prepare to see more asparagus from South America at the supermarket.

“The Peruvians can do it pretty cheaply, and so can the Mexicans, so I would imagine [imports] are going to increase,” Mr Fagan said.

The decline in production coincides with a drop in exports from 3,000 tonnes per year in 2019 to a little more than 1,000 tonnes in 2023.

Production of asparagus has fallen by nearly 50 per cent over the past five years. (ABC Rural: Jane McNaughton)

According to AusVeg chief executive Michael Coote, the drop is due to Japan, Australia’s main buyer, turning to Mexico and Peru during the pandemic.

“Recapturing some of the market share in Japan is crucial so there is another channel over and above the Australian marketplace,” he said.

“But that is dependent on a number of factors as well that are often outside of the growers’ control here in Australia.”

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