Fruit Growers Victoria (FGV) has echoed concerns raised by the Victorian Farmers Federation (VFF) regarding the growing impact of government water buybacks and the increasing influence of corporate investors in the water market.
FGV said many family-owned horticultural businesses are being placed under enormous pressure as water prices continue to rise beyond the reach of everyday growers.
“Growers simply cannot compete with large corporate investors and institutional buyers who have far greater financial capacity,” said FGV Chair, Mitchell McNab.
“For many fruit growers, water is not an investment asset — it is essential to producing food, maintaining orchards, supporting regional jobs, and keeping family farming businesses viable.”
FGV said an increasingly concerning aspect of the current market is that some commercial companies are selling lower reliability water to the Commonwealth and then intending to reinvest that capital into higher security water rights.
“This means government-funded buybacks are effectively injecting more capital back into an already overheated market, creating even greater competition for high reliability water,”
“Permanent plantings such as apples, pears, cherries and stonefruit rely on access to high reliability water to keep orchards alive and productive. Irrigators simply cannot compete in a market where corporate investors have significantly greater purchasing power.”
FGV said ongoing water buybacks are contributing to reduced confidence across the horticulture sector, particularly for permanent plantings where growers cannot simply stop production during difficult seasons.
“Orchards are long-term investments that rely on secure and affordable access to water. Increasing competition from corporate water holders is creating uncertainty and placing additional strain on growers already dealing with rising input costs, labour shortages and seasonal pressures.”
FGV is calling on governments to carefully consider the broader economic and social impacts of further water recovery measures on regional communities and food production.
“We support balanced and practical water policy outcomes that protect both the environment and the future of Australian food production,”
“Without affordable and accessible water, the long-term sustainability of family farming businesses and regional horticulture communities is at risk.”
FGV said it would continue working alongside industry organisations, including the VFF, to advocate for fair and sustainable water policies that support growers and regional communities.
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MEDIA CONTACT:
Mitchell McNab, FGV Chairman 0427 168 901
PDF - Fruit Growers Victoria Supports VFF Concerns Over Unfair Corporate Water Market
