Domestic and international demand for Australian avocados and broccoli is rising rapidly and providing a significant incentive for farmers to continue expanding their businesses according to Rural Bank’s latest Australian Horticulture Update.
Issued by its specialist insight team, Ag Answers, the Horticulture Update includes information about national production, seasonal conditions, prices and demand of Australia’s horticulture sector for the first five months of 2017.
Despite a slight three per cent contraction in the overall volume of Australian vegetables exported between January and May 2017 when compared with the same period in 2016, exports to the Singapore and UAE markets grew by 8 percent and 11 percent respectively.
This overall decline in vegetable exports in the first half of 2017 is in part due to the adverse weather conditions experienced in late 2016 and early 2017 which has in turn, limited supply and increased the vegetable consumer price index by more than 11 per cent for 2017 June quarter.
The Horticulture Update also revealed that Australian nut exports continued to go from strength to strength between January and May 2017, up a solid 14 per cent on the same period in 2016.
However, the same cannot be said of fruit exports which declined 13 per cent year-on-year primarily due to a 78 per cent and a 74 per cent reduction in the value of citrus exports to Singapore and Indonesia respectively.
Andrew Smith, General Manager for Agribusiness for Rural Bank, said the increased appetite at home and abroad for certain Australian fruit and vegetables is a great opportunity for producers to continue to grow their businesses to meet this increased demand.
“The ever increasing need for access to Australian fruit and vegetables such as avocados and broccoli is terrific news for our producers, especially in light of the recent difficult climatic conditions they’ve had to face.
“Gaining access to new export markets is crucial if Australian producers are to continue to grow, and the recent plan launched by Horticulture Innovation Australia to increase accessibility to new markets through increased levels of research is most welcome.
“Stimulating increased demand internationally for produce such as strawberries would help offset lowering domestic demand and potential overs-supply at times,” Mr Smith said.
Source: Rural Bank