Figures released by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES)'s Outlook 2016 agricultural commodities report, paint a somewhat bleak picture for Australian potato and tomato growers. Although the overall value of the industries are buoyant, processed tomato and potato imports are dragging down the local sector.
Australian potato production, by volume, declined slowly from 1.3 million tonnes in 2000–01 to 1.2 million tonnes in 2013–14. For tomatoes, Australian production declined by an average of 1.8 per cent a year between 2000–01 and 2013–14.
The report said domestic demand for fresh potatoes has grown, but demand for processing potatoes has declined because of "strong competition from imports".
It said the gross value of potato production, in real terms, grew slightly from 2000 to 2014 as the proportion of more highly priced fresh potatoes rose.
Potatoes accounted for about 18pc of the gross value of vegetable production in 2013–14.
"Potato production is expected to continue to decline slowly to around 1.16 million tonnes in 2020–21 as the processing sector continues to contract," the ABARES report said.
"Potato exports declined in volume and value over the five years to 2014–15 and have not shown any recovery in response to the weakening of the Australian dollar.
"In 2014–15 exports amounted to less than 1pc of production, at around 10,000 tonnes, and were valued at $34 million.
"More than one-third (by value) went to New Zealand. Potato exports are expected to remain at around these levels in the medium term."
Tomatoes are in similar territory with imports squeezing local production margins. In 2013–14 production was 326,000 tonnes.
ABARES said over the same period the gross value of tomato production increased by an average of 2.2pc a year in real terms to reach $481 million in 2014–15.
"This reflects a decline in the proportion of tomatoes used for processing," the report said. "The production system for processing tomatoes is quite different from that for fresh tomatoes, and the return on processing tomatoes is much lower.
"In 2013–14 the average unit gross value of tomatoes produced for processing was 13 cents a kilogram; for fresh tomatoes it was a little over $2 a kilogram."
Although the value of tomato exports increased by an impressive 60pc in real terms in 2014–15 following an increase of 40pc in the previous year, this was from a record low in 2012–13.
"Exports remain well below those of the years before 2009–10," ABARES said.
"Tomato exports are predominantly processed. Fresh tomato exports accounted for 11pc of the total value in 2014–15.
"New Zealand, Japan and Thailand were Australia’s largest markets for tomatoes in 2014–15. New Zealand and Singapore together accounted for half of Australia’s fresh tomato exports."
