Melbourne wholesale market's future in doubt as Coalition promises privatisation

The future of Melbourne's wholesale fruit and vegetable market hangs in the balance, with the Coalition promising to privatise the site if they win the state election. The 67-hectare site at Epping, which is home to 3,000 tenants selling fresh produce and cut flowers, has been a point of contention in recent years.

Privatisation plans

Shadow Agriculture Minister Emma Kealy said the Coalition wants to see the market "back in the hands" of wholesalers or industry. "This will raise around $600 million, which will help to pay down the state's debt that we're grappling with," she said. "The leading markets in Australia that have gone down this pathway … government doesn't make for the best landlord when it comes to these sorts of businesses."

The wholesale fruit and vegetable market moved to Epping in August 2015, following the closure of the previous decades-old market in West Melbourne. It is the only wholesale trading centre in the state, with tenants selling to independent retailers, hospitality businesses, aged care facilities, food processors and manufacturers.

Market challenges

Ms Kealy said the market has been facing significant challenges in recent years, including a $10 million annual loss. "The Melbourne wholesale fruit and veg market has been facing a lot of challenges over the past few years," Ms Kealy said. "Unfortunately, the way … the statutory body of the Melbourne Market Authority was established, it has never been able to deliver a surplus."

Labor's response

Meanwhile, Labor has ruled out selling the market, with Agriculture Minister Michaela Settle saying the privatisation would increase fruit and vegetable prices. "Victorians haven't even voted yet, and [Opposition Leader] Jess Wilson is already selling off our assets," she said in a statement. "The Liberals are addicted to flogging everything off."

Industry reaction

Vendor representative Fresh State has cautiously welcomed the Coalition's idea, with managing director and chief executive Jason Cooper saying it's an opportunity for industry ownership. "It's an election promise I'd be happy to hear from either side, to be fair," he said. "For too long the market's been operated as a government-owned property asset rather than essential infrastructure supporting Victoria's fresh produce industry."

Mr Cooper disagreed with the government's assertion that shoppers and farmers would be worse off, saying he would welcome a carefully structured transition that provides the industry with the opportunity to participate in its own ownership.