Balancing Demand, Price, and Sustainability in Australia's Capsicum Industry

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Balancing Demand, Price, and Sustainability in Australia's Capsicum Industry

From Farm to Fork

Capsicums, a staple in Australian kitchens, come in a vibrant array of colors, each with its own unique flavor and price point. But what determines their color and cost?

Australia's capsicum production, concentrated in Queensland and southern regions, reached nearly 74,000 tonnes in 2023. Western Australian grower Daniel Felton cultivates 40 types of fruits and vegetables, with capsicums being his main crop. He explains that the green variety thrives in cooler climates, while others transition from green to red or yellow.

The price difference between colors stems from their maturity. Green capsicums, harvested earlier, are less expensive than their red or yellow counterparts, which require longer growth periods. Yellow capsicums, known for their delicate flavor, command a higher price due to their cultivation difficulty. Orange capsicums, with their limited yield, are also priced higher.

Despite steady consumer demand, Australian capsicum production hasn't always been consistent. Carl Walker, president of the Bowen Gumlu Growers Association, notes that capsicum cultivation has expanded in recent years, replacing traditional crops like tomatoes and pumpkins. However, Australians' preference for red and green capsicums leaves yellow and orange varieties less appreciated.

Cost-of-living pressures are influencing consumer choices, with some opting for cheaper green capsicums over red. Farmers like Felton emphasize the importance of diversifying their crops to mitigate risks.

Recent hot weather in Queensland has shortened growing seasons and impacted capsicum quality. Additionally, imports from New Zealand, with their visually appealing glasshouse-grown capsicums, pose a challenge to Australian growers.

While northern growers anticipate an above-average capsicum crop this year, concerns remain about fair pricing. Growers like Walker believe supermarkets should be held accountable for the significant price difference between farm gate prices and retail prices.

The major supermarkets attribute price fluctuations to weather conditions and supply chain disruptions. However, industry experts like AUSVEG emphasize the need for fair farm gate prices to ensure the sustainability of Australian capsicum production and affordability for consumers.