Established celery growers struggle as oversupply pushes prices below production costs, threatening the industry’s sustainability.
Celery growers in New Zealand, many with decades of experience in the field, are facing significant challenges as the market dynamics shift, placing their future in jeopardy. After nearly a year of receiving prices well below the cost of production, several established producers are uncertain about their ability to continue in the sector.
Recent data from Stats NZ highlights the severity of the issue. Celery prices in July 2024 were down 56% compared to the same period last year. While these lower prices benefit consumers, growers argue that they are unsustainable for their operations, forcing many to consider downsizing or even exiting the market altogether.
Several Auckland region growers, some with more than 50 years in the business, acknowledge the natural ebb and flow of supply and demand. However, they believe there is more at play. A new market entrant, Solar Produce, has significantly increased its production, creating an oversupply that is driving prices down across the board. Despite maintaining consistent production volumes, these established growers find themselves selling celery at a considerable loss.
Fifth-generation grower Luke Franklin from Waimauku echoed the concerns of many in the industry. “There’s an oversupply, so we’re getting paid below cost, which makes things hard. We’ve got all our bills to pay, so we can’t keep going like this forever. The ones with the deepest pockets can stick it out for longer and normally survive,” Franklin explained.
One grower recounted how they refused to sell their crop to a supermarket after being offered just 60 cents per bunch, far below the $1.80 needed to break even. This price disparity is not only threatening the livelihood of growers but also affecting the quality of celery reaching consumers. Some producers lament that the market no longer rewards top-quality produce, with subpar celery becoming the new standard.
Supermarket chains like Woolworths and Foodstuffs have acknowledged the challenges facing celery growers but insist they cannot control market prices. Woolworths stated that they work closely with growers to ensure sustainable pricing, while Foodstuffs highlighted the difficulties growers face when there is an oversupply in the market.
Beyond financial concerns, long-established celery growers are also worried about food security. Should these experienced farmers be driven out of business, the industry may become overly reliant on just a few regions, leaving the entire celery supply chain vulnerable to weather events and other risks.
The future of celery farming in New Zealand remains uncertain as these market forces continue to pressure growers, forcing them to adapt or risk being forced out of the industry entirely.
