Media Releases
Carbon Tax – agricultural activities exempt from tax but other input costs may push prices up!
Release Date: July 12, 2011
The Adelaide Produce Market is concerned about the possible impact the new tax will have on fruit and vegetable prices after the Carbon Tax was announced by Prime Minister Julia Gillard yesterday.
“We appreciate that the Federal Labor Government has declared that on-site farming activities will be exempt from the carbon tax, however it’s the other associated costs that will not be exempt that will have a significant impact on food prices”, Adelaide Produce Market CEO Angelo Demasi said.
The Adelaide Produce Market, which supplies local greengrocers, supermarkets, Foodland and IGA stores, houses 60 wholesalers, 80 growers and a considerable number of distribution warehouse businesses.
“To ensure food safety and quality, the majority of our operations is conducted within cool-room warehouses, and any change to power costs will have a profound increase on the wholesale price of fruit and vegetables”, Mr Demasi said.
The Adelaide Produce Market is also deeply concerned about the intended reduction of the fuel tax credit scheme for heavy on-road transport vehicles, i.e. semi trailers starting in 2014. Over 90% of its fresh produce is shipped around the country via road transport.
“Our fresh produce comes to our market from all over the State, including the Adelaide Hills, Virginia, and the Riverland and Southern Mallee regions. It is then broken up and sold to retailers, whom again come from all over the State. Any reduction in fuel tax credits for semi trailers will have an impact on fruit and vegetables”, Mr Demasi said.
“With the proposed Carbon tax, there is a lot at stake when it comes to fresh produce” Mr Demasi said.
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