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Wholesalers Refuse Rent Rise: ''We won't pay!"

Fresh State

Melbourne – 8.00 am:  Over one hundred fruit and vegetable wholesalers from the Epping Market met today on the eve of unprecedented rent rises foreshadowed by the Victorian Government owned Melbourne Market Authority (MMA) last month.

 

Speaking at the meeting, Fresh State CEO Jason Cooper said wholesalers had collectively decided they would not be paying any rent, when their first increased payment falls due next week.

 

“The MMA is continuing in their attempt to increase the rents by up to 7.62%, annually for the next decade, which will result in the rent more than doubling over that period.

 

“The fact is, we already pay the highest rents in the country, but instead of asking for a rent reduction, we’ve asked for the rents to not increase.  It’s not too much to ask,” he said.

 

The MMA agreed last month to a temporary pause on the rent increase.  However, with no sign they plan to agree with requests for a rent freeze, wholesalers say they simply won’t be paying their rent.

 

Wholesalers hope their unprecedented ‘rent strike’ will force the MMA to negotiate a resolution.

 

“The rents proposed are unsustainable, unjust, and unbelievable.

 

“Put simply, wholesalers shouldn’t have to absorb this and unfortunately, if the MMA refuse to take the pressure off, it’s the growers, retailers, and public who will pay the price.

 

Last month, hundreds of wholesalers staged a protest at the Epping market, blockading the entrance to the Government’s purpose-built facility with forklifts.

 

Fresh State is calling for the resignation of the MMA’s Board, CEO and Management Team through its continuing Take the Pressure Off Campaign.

 

Key Facts:

Questions and Answers

1.      How much is the proposed rent increase for wholesalers at the Epping Fruit and Vegetable Market?

The increase in rent to be paid by wholesalers will be between 6.72% and 7.6%, compounding year on year for 10 years, meaning it will more than double in that time.

 

2.      How will the rent increases impact wholesalers, retailers and growers?

This will have a significant impact on wholesalers as it will reduce their margins considerably, meaning they will inevitably have to pass the burden on to growers and independent retailers. This will also affect other buyers including restaurants, childcare centres and aged care homes.  The rent increase may also force some wholesalers out of the market, as they will no longer be viable. The rent increase also has the potential to reduce competition as it will be too expensive for new wholesalers to enter the market.

 

3.      Is the rent increase likely to be passed on to consumers?

Yes, the rent increase will be passed on to consumers. Ultimately, consumers will pay a higher price for fresh fruit and veg as retailers will be forced to increase their prices. 

 

4.      How much will the price of fresh fruit and veg increase?

The wholesalers, growers and retailers understand the current cost of living crisis so while they continue to reduce their own margins where possible, with a massive 7.6% annual increase in rents, some of these costs will be passed on so consumers should expect their fruit and veg costs to increase.

 

5.      When will the fresh fruit and veg price hikes kick in?

The Melbourne Market Authority (MMA) has indicated a November timeline for the rent increases. Consumers should expect to see prices rise after this.

 

6.      How will stopping the rent rises keep fresh fruit and veg prices down?

By stopping the proposed 100% rent hikes, we can help keep operational costs for wholesalers, retailers and growers stable, reducing the pressure to raise prices on fresh produce. This will ensure fresh fruit and vegetables remain affordable (and accessible) for consumers, while supporting local businesses.

 

7.      What kind of support or relief would you like to see from the government to help alleviate the financial burden of these rent hikes?

Zero rent increases. Victorian wholesalers already pay more for rent than in other States (e.g. Brisbane market). We need to keep fresh produce affordable for everyone.

 

8.      Is there potential for the rent increases to compromise the quality of the produce supplied by wholesalers?

We’re committed to maintaining high standards, but with tighter margins, it becomes more difficult. We’re actively working to avoid any drop in the quality of the fruit and veg supplied.

Contact details:

For more information, please contact:

Adi Stevens RoyceComm - M: 0407 411 088 E: Adi@royce.com.au

For more information about the Take the Pressure Off Campaign, visit https://www.freshstate.com.au/pressureoff/