Profit, pigs and prosperity: the future of Queen Victoria Market

Queen Victoria Market (QVM) is one of Melbourne’s treasures, but due to changing consumer habits, the pandemic, and the market’s redevelopment, it has also become one of the city’s greatest challenges.

Both traders and management are feeling the economic pressure, and the City of Melbourne has become the market’s lifeline, allocating millions of dollars each year to ensure it stays afloat throughout its renewal, which is expected to be completed by 2031.

In an effort to navigate the financial challenges of these uncertain times, earlier this year QVM management introduced waste and electricity charges that traders were required to pay in addition to their rent.

The decision led to disquiet among fruit and vegetable traders, who went on strike for the first time in the market’s 150-year history earlier this year, claiming that management was “double-dipping” by incurring additional costs on top of their rent.

Speaking with North West City News, Queen Victoria Market CEO Matt Elliott conceded that consultation with traders had not been comprehensive enough when drafting the new charges in 2023.

According to Mr Elliott, management has always had the authority to charge traders for waste and electricity but had previously opted not to. However, due to the financial strain caused by shifting consumer spending and the impacts of COVID-19, he believes it is “fair” that traders shoulder some of these costs.

But following the protests, management has gone back to the drawing board, placing a freeze on the additional charges. Additionally, a working group made up of traders has been established to negotiate practical solutions around waste removal and electricity use.

The relationship between traders and management has been temporarily repaired. However, Mr Elliot now faces the challenge of transforming QVM into a profitable market while continuing to support traders and fostering an environment in which they can thrive.

The freeze on additional charges will remain in place until June this year, during which time the working group and management are exploring cost-saving options, one being the use of a pig farmer to collect organic waste.

This farmer would distribute the waste across several farms, avoiding the need to process it at Yarra Valley Water’s Waste to Energy facility, which is a costly process that has placed financial pressure on both traders and management.

The idea was proposed by fruit and vegetable trader Frankie Fontana, who is pleased that management is now willing to consider traders' input following the protests.

Mr Fontana told North West City News that he was “optimistic” about the short-term agreement but remained opposed to any additional fees for waste and electricity usage. He believes the working group can find solutions that remove the need for these extra charges.

Another suggestion Mr Fontana put forward was to explore alternative ways to power refrigerators, such as installing solar panels, rather than burdening traders with additional costs.

However, the strong opposition to extra charges could resurface once the freeze ends, with management maintaining its position that traders should cover a portion of waste and electricity expenses.

Mr Elliott is hopeful that a solution can be found within this period and has flagged “bigger issues” facing the market, chief among them being how to compete with major supermarkets and adapt to evolving consumer trends.

None of this, he acknowledges, can happen without trust between management and traders, which he doesn’t underestimate.

Another area of concern that has added to the growing distrust is the market’s licensing agreements, which have been labelled as excessive.

Caricature artist at the market and member of the Trader Representative Council (TRC), Ivano Guseli, said it was essential the licensing agreements were amended to make them less punitive towards traders.

Currently, if traders breach their licence by opening late or encroaching beyond their allocated stall space, they receive a Notice of Infringement. Three infringements can result in licence termination.

Mr Elliott says it's unlikely management would terminate a licence over three minor breaches, noting that such an action would only be considered if safety was at risk. However, he acknowledges that this policy has contributed to a lack of trust and is working with the Trader Representative Council (TRC) to amend the licensing terms.

Mr Guseli, who was recently elected to the TRC, said that there was no quick fix to the challenges facing Queen Victoria Market and that management had a very difficult job ahead.

However, despite the differences between traders, management, and council, he said they all shared the same goal: for the market to prosper. •