The economic value of the vegetable industry is projected to grow significantly, with recently published data by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) indicating that the gross value of the vegetable industry will reach $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.
“The projected growth of the vegetable industry is good news for the national economy, as the vegetable industry is a significant contributor to Australian agriculture,” AUSVEG spokesman 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.”
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,” Mr Lindhe said.