Value of our Horticulture exports now closing in on the Lamb and Dairy sectors
- By: "Farm Tender" News
- Machinery & Equipment News
- Jul 01, 2019
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Having just attended the hugely successful Hort Connections conference in Melbourne the Australian horticulture sector continues to go from strength to strength, with the value of our horticulture exports now closing in on the lamb and dairy sectors.
In our detailed Horticulture In Focus report, released this week, analysis of ABARES data shows that the sector is worth approximately $11.4 billion, with growth in export value playing a key part in this.
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Our horticultural exports have grown to a value of $3.2 billion. To put this in context, the Australian lamb and mutton, and dairy sectors have an export value of $3.6 billion and $3.5 billion respectively.
Benefits flowing from the China-Australia Free Trade Agreement (ChAFTA), which entered into force in 2015, have contributed to this growth. Improved market access and lowered tariffs under ChAFTA have had a large impact, particularly for the fruit sector.
In the first three years after ChAFTA was ratified, the value of Australian navel orange exports doubled. Mandarin export values tripled over the same period.
While overall the value of Australian fruit exports is 112 per cent greater than it was a decade ago, not all fruit has benefitted from ChAFTA terms. Fruits that are less export oriented, like strawberries and bananas, have not seen major price growth in a long period of time.
The tree nut sector is booming, and the number of almond trees in Australia has increased 67 per cent in the five years to 2017-18.
With over 11 million almond trees, and four million of these yet to reach fruit bearing age, we anticipate that Australian almond production values will increase rapidly in the near to medium term.
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New opportunities in Asia have led to a resurgence in the table grape sector, with annual table and drying grape production increasing from 75,000 tonnes in 2011-12 to 164,000 tonnes in 2016-17.
Permanent plantings in the Murray Darling Basin are increasing, and many are water intensive. As they increase, and rainfall and water allocation availability tightens, we see a structural increase in water prices as likely.
Looking at vegetables, the value of domestic production has increased to reach over $4 billion in 2017-18. Interestingly, the value of vegetable imports is also increasing, and is now over $1 billion per annum, comprising mostly frozen and processed foods.
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This demonstrates the importance of market access for exports, as well as an internationally competitive food processing sector.
Our most recent NAB Agribusiness Banker Survey, released in May 2019, indicates that on the whole horticulture business conditions are positive and strongly outperforming agriculture more broadly
https://business.nab.com.au/
https://business.nab.com.au/
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