The area contains about 11.8per cent of Sydney's identified vegetable farms the same amount as the Hawkesbury.

Both were behind Liverpool, which contained 35 per cent of Sydney's vegetable farms.

The report, Ground Truthing of the Sydney Vegetable Industry in 2008, by the NSW Department of Industry and Investment, said the ``overwhelming impression is that for many local government areas the vegetable industry is shrinking''.

But it stated that the industry could expand in some areas.

The report, funded by the department and Horticulture Australia Limited, stated that more than half of Sydney's identified vegetable-growing enterprises were in the proposed south-west and north-west growth centres earmarked for subdivision, which will be either side of Penrith City.

Food writer and cook Ross Dobson, who opened the Cafe at Lewers, Emu Plains, earlier this year, said sourcing local produce and supporting local farmers was important.

``Whether it be food styling or catering, my providores deliver the produce that comes from where I grew up, in the Penrith Valley.''

He said with the new farmers' market in Penrith, these were ``very exciting times''.

Mary Vella, who runs a strawberry market garden in Castlereagh, said people wanted to get away from ``wilted'' products. ``The push is for fresh produce and the demand is there,'' she said.

Mamre Homestead last month hosted its first 100 Mile Dinner as part of the Sydney International Food Festival, with all produce sourced within 100 miles including the homestead's African farm project.

A Penrith Council spokesman said the council wanted to protect local food production so ``the benefits of fresh food and a sustainable local economy are here for generations to come''.