Farmers across several sectors have warned the price of fresh fruit, vegetables and meat will rise even further because of the Fair Work Commission's decision to raise the national minimum wage.
The increase will see the nation's lowest paid workers earn $21.38 per hour from July 1 — a boost of about $40 a week for a full-time worker.
Unions and social support advocates welcome the move as Australians struggle with inflation but some primary producers warn they will be forced to pass the increase onto customers.
New South Wales apple grower Ian Cathels said farmers were also struggling — both with inflation and energy costs.
He labelled the Fair Work Commission's decision "another nail in the coffin".
"When you spend $4 million on wages, to find an extra $200,000 that you didn't have before, it's a lot."
Growers could exit industry
Queensland's Bundaberg Fruit and Vegetable Growers chief executive officer Bree Grima considered the wage increase yet another challenge for the horticulture sector to absorb, which could see some growers exit the industry.
"Until we start getting a fair rate for our projects, all that's going to do is squeeze out those operators that are already on unsustainable margins, and there are quite a few of them," she said.
"The price that we see in the supermarkets now for fruit and veg is simply a reflection of supply and demand [but] what it doesn't reflect is that our input costs have absolutely soared.
"We've seen major increases in terms of our diesel going up 22 per cent, fertiliser is over 170 per cent, packaging has doubled in price.
"And now to see labour, which is actually by far our biggest input costs for farmers, has now skyrocketed."
Pig farmer could 'pull the pin'
South Australian pig farmer Anthony said he would likely close his farm in Bordertown.
"I've got pigs and we're working for nothing, and our costs are going up and up and up, more and more, everyday.
"People complaining about the price of lettuces, well get used to it because us farmers can't keep working for nothing.
"With this added into it, well everything else we are putting into the pigs is going to get dearer again.
Victorian Farmers Federation president Emma Germano warned producers would have no choice but to pass on the increase.
"We've got people at the same time saying how come iceberg [lettuce] is at $12 a head? Well, it will end up at $13 a head if this sort of blunt instrument is used to put up wages."
Wage rise 'inevitable'
Primary Producers South Australia chairperson Professor Simon Maddocks said he believed the minimum wage increase had to happen.
"I think everybody appreciates with increased cost of living pressures, there was inevitably going to be some requirement to see a positive movement in wages," he said.
"There was inevitably going to be some sort of decision to address wage levels in the country."
But he said farmers were right to be worried about how they would find the extra money needed to pay minimum wage agriculture workers.
"From a primary producer's perspective, with increasing fuel costs, labour shortages, increased input costs, this will just add another pressure to production costs," Mr Maddocks said.
"I think that's inevitable."
He said the decision would invariably add pressure to businesses already heavily impacted by increasing costs of production due to disrupted global supply chains.
"But at some point, it's going to have to be rolled down the line to consumers," Mr Maddocks said.
Bundaberg macadamia and avocado grower Joe Lyons employs about 14 staff during peak season — six full-time and the remainder as casuals.
He said he would wait to see the impact of the decision on the award rates, as many of his staff were already paid above minimum wage.
"We need to wait for the award wage to come out [then] we'll look at our levels," Mr Lyons said.
"As the grower, we'll just basically absorb these costs as best we can [but] not all growers are going to be able to do this.
"You also have to remember we've lost piece rates, and we also have superannuation that's going up 4.4 per cent as of July 1 as well."
