Groups link for vegetable boost
A new agreement could yield significant improvements for Western Australian vegetable producers, by linking them with local council resources.
A deal has been signed to make the state’s peak vegetable grower group VegetablesWA an associate member of the Western Australian Local Government Association (WALGA).
The deal means vegetable growers will be able to employ the weight of local government bargaining powers and supply contracts, hopefully leading to significant discounts.
WA’s vegetable industry is worth about $312 million per year, but carries some of the highest input costs of any industry.
Vegetable growers have long lamented the high costs of fuel, energy and equipment – but now in WA they may be able to free up some funds and make changes to the way they operate.
VegetablesWA chief executive John Shannon said when they discovered how much cross-over there was between the vegetable industry and regional councils, the decision became obvious.
“In doing research we met WALGA, who carry out that role for their members, with a view to learning and rolling out a similar system ourselves. They were extremely helpful and said we can either teach you or you can come on board with our existing tender panel system,” Mr Shannon said
“There is so much crossover with what local governments require and what our growers require, and when you are doing things at such massive scale you really can get big savings.”
As associates of the WALGA, VegetablesWA members will have access to a range of discounts, including 15 cents per litre on fuel, 17 per cent off agricultural equipment, up to 22 per cent savings on contestable energy and close to 30 per cent for transport.
VegetablesWA president and prominent lettuce grower Maureen Dobra said it will help producers get a grip on costs, as they continue to spiral out of control.
“Having savings somewhere else to off-set [rising costs] will be terrific,” she said
“It makes them that bit more profitable and also a bit more viable as well.”