A north west farmer who contracts for Tasmanian vegetable company Premium Fresh says a big problem in the vegetable industry is that consumers have been conditioned to expect cheap food.
Matt Ryan is owed money by Premium Fresh, which has gone into voluntary administration after reporting debts of 6 and a half million dollars.
Matt Ryan says he hopes Premium Fresh will continue operations.
"I've been doing business with them for 12 years because they are good blokes, they are good to deal with, they are genuinely good people and they don't deserve what they are going through.
And neither are the people that are associated with this."
Matt Ryan employs a few full time people on the farm in addition to contractors and says there will 'be some issues' if they don't get any payment.
"The industry works on fairly skinny margins at the best of times".
He says the industry has suffered a number of bad seasons, combined with a massive oversupply problem.
"We work very hard to run the most efficient businesses we can, certainly the supermarket price wars and the constant and relentless pressure to have downward pressure on prices doesn't help.
There's a problem with the retailers with the price war conditioning consumers that there's not a value in food, that it's a low value item.
The expectation is that it's delivered at virtually no cost or very little cost to them".
Source: ABC Rural (http://goo.gl/orn2J)
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