Australia’s love affair with imported frozen and processed fruit and vegetables is continuing unabated.
The Australian Bureau of Agriculture and Resource Economics and Sciences says imports began increasing during the 10 year long drought, and it’s been compounded by the closure of processing plants here, the strong Australian dollar, and the high cost of labour.
ABARES sees the gross value of horticulture (excluding wine grapes) rising slightly to $10.2 billion in the next five years.
But in this sector, Australia’s exports are shrinking while imports are booming.
Figures for 2010-11 show imports were more than three times the value of exports;
* fruit exports were worth $446 million, while imports were worth $2 billion.
* nut exports achieved $207 million, with imports at $267million.
* vegetable exports were worth $313 million but we imported $651 million worth
But strong global demand could hold some hope for fruit, nuts and vegetable producers, particularly from China and India.
ABARES predicts the value of fruit and vegetable production will grow by 7 per cent each in 2011-12 to $3.7 billion and $3.6 billion respectively, after a bumper harvest and excellent quality. That’s despite the lower prices. By 2016-17 it should reach $4.1 billion.
Citrus
Brazil produces 80 per cent of world orange juice exports, and it’s predicted to increase after more regions were planted to orange trees. That will continue to force Australian citrus prices lower for the next 5 years.
Australia gained access to the US market in the 1990s but since then it’s faced competition from cheap South African and Chilean citrus.
Apples
Despite opening the doors to Chinese and New Zealand apples, Australia imported just 703 tonnes of apples in the first half of 2011. But ABARES is predicting lower Australian apple prices and for smaller inefficient producers to exit the industry.
ABARES forecast apple production to rise to 310,000 tonnes by 2016-17, from 270,000 tonnes in 2011-12.
Bananas
Australian banana production will increase by 11 per cent in 2012-13, says ABARES and because of strict quarantine, we can’t import bananas. ABARES says prices will continue to be affected by climactic events.