Horticulture – the big picture

Max Foster

Economist

ABARES

Overview

• Nature of Australian horticulture

• Financial performance

• Future prospects

– world horticulture trends

– challenges

Value of horticulture, by climate zone, 2008-09

Value shares of horticulture Average, three years to 2009-10

Gross value of production

Fresh fruit, nut and vegetable imports

• Subject to strict quarantine measures

• Main sources United States and New Zealand

• But other countries gaining market access

Net export value

Australian horticultureFinancial performance

Financial performance of vegetable farms average per farm

%$’000

Estimated returns per hectare Irrigation farms, Murray-Darling Basin, 2006-07

Australian horticultureFuture prospects

World food consumption growth 2005-07 versus 1995-97

0

20

40

60

80

1989 1994 1999 2004 2009

2011

US$b

juice

fruit, nuts

vegetables

processed fruit

processed vegetables

Value of world fruit, nut and vegetable exports

Gross value of horticultural production, Australia

Challenges

• Strong Australian dollar

• Labour shortages

• Water market reforms

Australian horticulture The big picture

• Large and growing industry

• Strong demand growth prospects

• Challenges

– Australian dollar, labour shortages