Third tomato grower in a year goes under

Tomato farming operation Basacar Produce entered into voluntary administration on 18 April, costing 41 workers their jobs. Basacar is the third major tomato-growing operation to enter administration in the past 12 months, following SP Exports and Barbera.

AUSVEG, the national peak industry body for vegetable and potato growers, said the collapse “has sent shockwaves through the industry”, citing increasing production costs and slim margins as a result of the supermarket price wars as the catalyst for the companies’ collapse.

“I have written a letter to the Federal Minister for Agriculture, Fisheries and Forestry, the Hon Joe Ludwig requesting that an official roundtable be convened as soon as possible to address the closure of vegetable-growing operations and to prevent such situations being faced by growers in the future,” said AUSVEG Chief Executive Officer Richard Mulcahy.

“This industry is facing incredible challenges and something must be done now to avoid the long-term negative effects that this attrition will have on the Australian vegetable industry and the Australian people.

“The closure of operations like Basacar Produce is worrying not only for the Australian vegetable industry, it raises concern about the ability of our nation to provide for its growing need for food as our population increases,” said Mulcahy.