What will shortages of harvest workers mean?

The fresh produce industry is highly reliant on people to harvest fruit and vegetables. Labour, is the most expensive input for most growers, so without the necessary number of people to harvest fresh produce, growers are likely to do one or more of the following:
  • Destroy crops: this is because it is easier for growers to "cut their losses" than continue to invest in crops (that is continue to apply water, fertiliser and maintenance) when they know they cannot harvest the crop.
  • Reduce plantings: a number of fresh produce lines do not require permanent plantings. Crops like vegetables and strawberries, are planted at regular intervals. As a result of shortages, many growers will reduce the number of plants planted so there are fewer to harvest. This matches the reduced labour requirement, but means there is less produce for consumers over all.
  • "Strip pick": growers may elect to remove all fruit from trees rather than pick slectively for good quality fruit. This means that all fruit will be picked at the same time, this often leads to poorer quality fruit, lower priecs to the farmer and across a season, a shortage of fruit.

Impact of fewer harvest workers on Australian consumers

  • The AFPA has funded research to model the impact of an 80% reduction in harvest workers on the industry, Australian economy and consumers. The results of this modelling are:
  • $6.3 billion lower in the output of the fresh produce insustry by end of 2020-21
  • Australia's GDP estimated to be $13 billion lower by end of 2020-21; with significant impacts to the food manufacturing and retail sectors
  • 128,000 fewer workers employed across the economy
  • Price increase of 60% per kilogram across fresh produce by end of 2020-21