Recently published data by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) demonstrates that the economic value of the vegetable industry is set to grow significantly, with the gross value reaching $4.2 billion by 2020-21.
The projected growth is outlined in the Agricultural Commodities report for the March 2016 quarter. The report states that the 2013-14 gross value of vegetable production of $3.6 billion will expand in the next five years due to increases in both export and domestic markets.
AUSVEG spokesperson Shaun Lindhe said “The projected increase in the gross value of the vegetable industry is a positive indicator for growers, so long as this increased value translates to greater returns at the farm-gate.''
“Managing costs, diversifying into export markets and continuing to look at potential business efficiencies will be extremely important to ensure that the broader industry can remain profitable long-term.”
The projected growth is partly based on the assumption that the Australian dollar will remain relatively weak, which is expected to support a projected rise in the value of horticultural exports over the medium term.
Exports in the Australian vegetable industry are projected to contribute to its increased value, with the gross value set to rise to a nominal value of $396 million by 2020-21, up from $270 million in 2013-14.
“Australia’s vegetables are sought after, with growing middle class populations in Asia and projected growth in the food sector in the UAE stimulating increased demand for a greater variety of Australian vegetables,” said Mr Lindhe.
“Recently signed Free Trade Agreements with South Korea and Japan should also assist Australian growers to increase vegetable exports over time.”
