A Lancefield grocery store owner is concerned about the impact announced rent increases at the Melbourne Market will have on produce prices and availability.
The state-owned Melbourne Market Authority announced that rent prices for traders at its produce market in Epping will rise by 6.7–7.6 per cent each year over the next 10 years.
The market is the state’s largest fruit and vegetable trading site, where store owners meet with growers and traders – many who do not supply to the larger supermarkets – to buy and sell fruit and vegetables.
Lancefield Providore owner Greg Cheatley said he is concerned about the flow-on effects of the rent increase.
“What it will mean is that the smaller growers will probably stop coming to the market and may then sell their produce to the larger wholesalers who can afford to stay at the market,” Mr Cheatley said.
“There will be less product and price choice supplied to the market and the other knock on effect will be that prices will almost invariably increase,” he said.
“Either we absorb increases or pass them on, and increasingly it becomes more difficult to absorb costs … that’s a fact in any business.”
A Melbourne Market Authority spokesperson said the rent prices at the wholesale market have been held below market rates for almost 10 years.
“This decision will ensure the Melbourne Market is sustainable into the future and can continue to provide Victorians access to affordable fresh produce. As the adjustment is spread over 10 years, it means rent will remain below market rate for years to come,” the spokesperson said.
Star Weekly understands that the rent adjustments are based on a valuation conducted through the Valuer-General Victoria (VGV).
