The Australian vegetable industry is predicted to grow in value to $4.2 billion by 2020-21 according to new forecasts.
The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) has released fresh data indicating 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.
“This is good news for the national economy as the vegetable industry is a significant contributor to Australian agriculture,” said AUSVEG spokesperson Shaun Lindhe.
“It's also a positive indicator for growers, as long as the 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 in ensuring 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 highly 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,” Lindhe said.
“Local growers can use this reputation to access international markets to sell their produce and increase the value of the entire industry.
“Recently signed Free Trade Agreements with South Korea and Japan should also assist Australian growers to increase vegetable exports over time.”
