Australian farmers appear to be struggling amid a tomato oversupply situation in the country.
According to Box Divvy, a network that connects farmers and food manufacturers, the unprecedented glut of truss tomatoes has driven market prices to as low as $4-$5 per 5kg tray – barely 80 cents-$1 per kilo, putting many people at risk of financial ruin.
The platform stated that the tomato brown rugose fruit virus occurred in August and the rise of high-tech glasshouse production had significantly expanded supplies.
“The virus was a tough blow,” said Matt McInerney, farm manager at K-Fresh, a family-run farm in Virginia, South Australia.
“Even though it’s under control now, the restrictions have left us with more produce than we can sell. Prices have dropped through the floor, and it’s hard to make ends meet in a situation like this.”
While growers face the brunt of the excess, merchants’ pricing tactics are raising questions. Truss tomatoes are being sold for $3.90 per kilo in some cases, representing a roughly 400 per cent increase from the 80 cents per kilo received by some growers.
“We’re not here to accuse anyone, but if this holds true, it raises serious questions about fairness in the food supply chain. How can this system be fair to farmers when they’re losing money while others profit?” added co-founder of Box Divvy, Anton van den Berg.
Box Divvy asked growers what they needed to break even and paid them reasonably, like $8 per tray for K-Fresh truss tomatoes, to discover a solution.
“We’re selling the trays – 5kg or about 30-40 tomatoes—to our members for $10 and encouraging them to order as many as possible to help address the glut,” Berg added.
“At $2 a kilo, these fresh, Australian-grown truss tomatoes are even cheaper than the lowest-priced imported canned tomatoes.”
