The Victorian Farmers Federation (VFF) is concerned at suggestions that a drop in diesel prices could see supermarkets slashing the shelf price of fruit and vegetables by up to 15pc.
VFF Horticulture Group president Peter Cochrane said Victorian farmers have limited control over the price they receive for their produce, and while ‘industry experts’ have predicted that prices will fall, this cannot be at the farmers’ expense.
"Fuel is only one component of the cost of production. Prices paid to farmers did not increase in line with the increases in fuel prices and there is no reason for farm gate prices to now fall in line with fuel prices," Peter Cochrane said.
While the cost of transport from farm to market may be stabilising, the price of fruit and vegetables is primarily determined by the supply and demand situation of any given product in the market place, not whether or not the price of fuel comes down by a few cents.
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