Herbs are growing in abundance thanks to ideal spring and winter conditions, but demand is thought to have stagnated as shoppers face the cost-of-living crisis.
Richard Fairley grows herbs at his farm in Biloela in central Queensland.
In winter he plants coriander, parsley and chives, for spring he has basil and oregano in the ground.
“It’s nice and green, it smells great, and everything’s been going really well,” he said.
It has been a similar story for herb growers across the country, and Paul Joseph, managing director of Brisbane-based wholesaler Alfred E Chave, said the market was saturated.
He said growers had not planted more than usual but because the weather had been “exceptional”, production on some farms had doubled.
“Having that run through winter of very good, stable weather, the plants just kept consistently producing at probably a quicker rate than what was anticipated,” he said.
‘Only need a sprig’
Mr Joseph sells to fresh produce stores, restaurants and cafes.
He said shoppers were not likely to buy extra herbs when they were on special compared to fruit and vegetables.
“If herbs are oversupplied, you’re not going to use two bunches of them in a dish where you only need maybe a sprig,” he said
“It seems like we’re not selling as many herbs, but we’re probably selling the same amount … we’ve just got too much supply.”
To combat the oversupply Mr Jospeh said growers were working with their suppliers to reduce the excess herbs on the market.
“We’re just trying to harness our suppliers and tell them what we need instead of them just going out and planting what they think,” he said.
Herbs are known for being a volatile and expensive crop, the first to be taken off grocery lists when times are tough, Mr Joseph said.
“When COVID hit it was one of the hardest hit lines that was just left behind because people went back to basic cooking,” he said.
He said they were also viewed as a wasteful product as fresh herbs could go off quickly, and he was expecting more people to make the switch to dried herbs.
“One little jar of dried [herbs] will last you almost a lifetime depending on what herb it is as opposed to spending $2-3 on a bunch,” he said.
Prices for herbs have remained static, and Mr Joseph said it was becoming harder to meet the cost of production price for the labour-intensive crop.
“The most expensive cost item when you’re growing produce at the moment is human hands,” he said.
But Mr Joseph believed demand from the hospitality industry would remain strong.
“Restaurants, hotels and the hospitality industry are probably too far in to not have herbs now,” he said.
Overseas demand
Mr Fairley supplies his crop of herbs to a business that sells lightly dried herbs and pastes to both the Australian and overseas market.
He said around 70 per cent went to America.
The company Mr Fairley supplies sends him 12-month market forecasts.
He said while demand was still rising, it was slowing down, and he was not sure what to expect for 2025.
“With our largest export to America it’ll be interesting to see just how the Americans take to the change of government,” he said.
“Time will tell from January onwards, so we’re hoping everything’s positive.”
