This is well below the break-even price of about $8 a tray (or $1.60/kg) that farmers need to cover their costs, leaving many at risk of devastating financial losses.
As growers bear the brunt of the glut, retailers’ pricing practices are raising eyebrows. In some cases, truss tomatoes are being advertised for $3.90/kg — nearly a 400 per cent mark-up from the 80c/kg some farmers are receiving.
This disconnect between what farmers are paid and what consumers are charged underscores serious issues within Australia’s food supply chain.
The crisis began last year when a virus was detected on three farms in South Australia. Although the outbreak was quickly contained, movement restrictions remain in place, preventing South Australian tomatoes from entering Queensland and Western Australia.
At the same time, significant expansions in high-tech glasshouse production in Victoria and medium-tech greenhouse production in South Australia have dramatically increased supply.
Advances in growing techniques have boosted yields from 65kg to 85kg per square metre in just a few years, further flooding the market and exacerbating the oversupply issue.
“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.”
Anton van den Berg is the co-founder of Box Divvy, a modern food co-operative that connects communities with affordable, fresh produce while reducing waste and supporting farmers.
As a former farmer himself, he understands the immense pressure growers face in situations like this.
“If farmers are being paid $4 to $5 per tray while tomatoes sell for $6 per kilo in stores, that could mean a mark-up of 400 per cent,” Anton said.
“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?”
While some buyers could have taken advantage of the tomato glut by purchasing produce at rock-bottom prices, Box Divvy took a different approach.
The network asked growers what they needed to break even and paid them fairly, such as $8 per tray for truss tomatoes from K-Fresh.
“At Box Divvy, we’re focused on building a more sustainable food system,” Anton said.
“We asked the grower for their break-even price and paid it because supporting farmers through tough times ensures the long-term viability of local agriculture.
“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.
“At $2 a kilo, these fresh, Australian-grown truss tomatoes are even cheaper than the lowest-priced imported canned tomatoes. It’s proof that sustainability and affordability can go hand in hand.”
Box Divvy’s commitment to pricing transparency also sets it apart. Members know exactly how much they are paying for produce, what portion of the price goes to the farmer and how the overall cost compares to supermarket prices. This level of openness ensures fairness for growers and consumers while fostering trust within the community.
Despite paying farmers a fair price, Box Divvy is still able to offer its members fresh, seasonal produce at prices 30 per cent lower than major supermarkets.
The network also helps reduce food waste by connecting surplus produce with communities, ensuring no fresh food is unnecessarily lost.
Operating like a modern co-op, Box Divvy connects communities directly with growers and suppliers through its 296 hubs from Canberra to Coffs Harbour.
With more than 13,000 members and one or two new hubs opening every week, Box Divvy is rapidly expanding as a fair and transparent alternative to traditional retailers.
“By supporting growers, offering pricing transparency and minimising waste, we’re creating a system that benefits both farmers and families,” Anton said.
“Transparency is key — it ensures fairness for farmers, value for consumers and accountability across the food industry.
“It’s time to take a closer look at how our food is priced and who it impacts.”
