FALLING retail prices for fresh produce are hurting Australian producers, farm leaders have warned.
Federal Government statistics show the cost of fruit and vegetables dropped more than 5 per cent in the September quarter.
Fruit Growers Victoria general manager John Wilson said the price drop was "a very big concern".
"We've got reasonably high cool store stocks and it puts fruit growers at the mercy of supermarkets," Mr Wilson said.
"Apple and pear growers are taking $8 to $10 a case below last year's prices."
Mr Wilson said he knew "quite a few" growers who had been forced to sell stock out of their cool stores - which they had not yet intended to sell - for cash flow to keep their businesses going.
AusVeg chairman John Brent said the checkout price of vegetables had dropped 5.6 per cent in the September quarter.
"A drop of this magnitude will inevitably cause flow-on effects for Australian growers, who will likely bear the brunt when retailers pass on (the price reduction)," Mr Brent said.
A spokesman for Woolworths said the price of fruit and vegetables was down because of a "good harvest" this year.
"Some prices are down because of falls in commodities overseas," he said.
"There's an abundance of fresh produce in Australia.
"Some international markets are tightening up."
