AUSVEG, the peak body for vegetable growers reports that Australia's vegetable crops are being out sold by cheaper imports as the value of the industry falls. The entire agricultural industry grew by $2.6 billion in 2014/15, according to new ABS data, but the vegetable sector contracted by almost five per cent.
An extremely dry season may explain some of the drops but cheaper imports were definitely playing a role, AUSVEG economist Andrew Kruup said.
"What we know is the import costs for foreign countries are a lot lower than the domestic market. So the prices can also be a lot lower," Mr Kruup told AAP.
AUSVEG says vegetable imports grew by seven per cent over last financial year.
Mr Kruup said even if the bad harvest had impacted volumes, rising imports could cause ongoing damage to the market.
Italy, China and the US exported nearly 200,000 tonnes of vegetables to Australia last financial year and although Australia does export a significant amount of produce itself, Mr Kruup said the high price often scares buyers away.
