In the past 2 ½ years a depreciating Australian dollar has improved apple and pear growers’ competitive position in a number of significant key markets. Apple and Pear Australia Limited economist Yang Song, says that apple and pear growers can take advantage of the lower Australian dollar to improve their export volumes and profit.
Until 2013 the Australian dollar appreciated strongly again the US dollar rising from US79.39c in 2007 to a peak of over $US1.1 in 2011, making exports a challenge for Australian producers because it was more expensive for buyers to purchase Australian fruit.
Ms Song said between 2007 and 2015 the Australian dollar fell against nine countries including Australia’s major trading partners, the US, China and Japan. And in the past 2 ½ years the depreciating Aussie dollar has showed an improved position in 15 of the 22 countries that Australia trades or competes with.
“It has become increasingly advantageous over the last two-and-a-half years to export Australian apples and pears to Hong Kong, United Kingdom, Vietnam, China, Taiwan, Singapore, Thailand, New Zealand and Europe as the AUD has depreciated against their respective currencies.”
For example, a grower exporting into Hong Kong in 2011 at $3/kg could now maintain the same profit margin by selling for $2.30/kg.
Overall, apple and pear exports rose last year and from January to November apple exports lifted by 111 per cent and pear exports increased by 46 per cent compared to the 2014 season. And while there was minimal evidence the rise was due to a depreciating Australian dollar, Ms Song said it was certainly a contributing factor.
