Fruit is rotting at Australian ports as staff and funding shortfalls delay the import of produce and risk the destruction of crucial trade relationships, importers say.
Further falls in supply also risk consumers having to pay more for fruit and vegetables.
It comes as the federal government has warned that floods in the eastern states will drive up the price of food and as farmers fear an $80-billion wipeout if foot-and-mouth disease (FMD) makes it to Australia.
Joe Saina from the Australian Horticultural Exporters and Importers Association said importers are waiting weeks for fresh produce to be cleared by Australian government officials.
"The term crisis is not unrealistic," Mr Saina said, adding that a wait of three to five days was typically expected.
He said the problem is worse in Melbourne and Sydney, where fruit, vegetables and flowers are being damaged, downgraded or written off due to delays.
"It's certainly a situation that we're now going to face reputational damage with our trading partners," Mr Saina said.
Fresh produce is inspected for pests, disease and weeds by officials from the Australian Department of Agriculture, Fisheries and Forestry (DAFF), but Mr Saina claims there are not enough people to do the job.
Australia previously employed inspectors in the United States and New Zealand to inspect fresh food before it was imported, but the former coalition government moved much of that process back to Australia in an attempt to make the system more efficient.
Mr Saina said the change had increased biosecurity risks and led to the delays.
"The reason it's taking so long is because the federal Department of Agriculture doesn't have the resources to conduct the inspections in a timely fashion," he said.
"The results of that are a lack of human resources."
Importers claim delays can cost them hundreds of thousands of dollars a year. But they wouldn't speak publicly, fearing their businesses would be subjected to further delays by inspectors.
"We don't want to be shooting our one and only regulator," Mr Saina said.
Trade at risk
Mr Saina said if Australia expected to export produce it needed to improve the way it imported.
"It's about the bilateral nature of trade and it's about not being hypocritical about the way that we're dealing with people's products," he said.
"If we want to export into some of the Asian countries and we get delayed at a certain port and the delays are continuing, there's talk about political influence or there's some sort of dysfunctionality in that port. Well guess what, we're doing it too."
The Department of Agriculture, Fisheries and Forestry declined to comment.
Federal Agriculture Minister Murray Watt said he was aware of the concerns raised by importers that extended beyond the fresh produce sector.
"I've had everyone from vehicle importers to horticulture industry representatives raise this with me," he said.
"I think we can do better to get those clearance times down."
Mr Watt has asked the department to investigate.
"Everyone understands that because of COVID and other issues, there have been a range of problems arise with our trade and travel systems in the country," he said.
"I recently approved the creation of a taskforce within the department to tackle this issue."
It is not clear when the taskforce will report.
System, funding changes needed: NFF
Importers have joined calls from farmers and exporters for the government to provide long-term biosecurity funding as part of next week's federal budget.
National Farmers' Federation (NFF) chief executive Tony Mahar said funding to keep Australia free from pests and disease was not matching the increased risk as more passengers, freight and mail have been arriving.
"Our estimations are that the government's commitment to biosecurity levels, funding and resource allocation has flat-lined," Mr Mahar said.
"In fact, in real terms, [it has] gone down to 0.7 per cent a year."
In northern Australia, the live cattle export trade has slowed drastically since foot-and-mouth disease and lumpy skin disease were detected in Indonesia earlier this year.
Tom Dawkins from the NT Livestock Exporters Association fears devastating animal welfare and trade implications if similar diseases are detected in Australia.
"So much of our trade access and our reputation lives and breathes on that disease-free reputation, so we can never do enough" he said.
Speaking ahead of next week's federal budget, Mr Watt has told the ABC more funding for biosecurity is needed.
"I think that everyone recognises that our biosecurity system hasn't kept pace with the risk level that we now face as a country and that is going to require extra funding," he said.
Watch this story on ABC TV's Landline at 12:30pm on Sunday, or on ABC iview.
