The recently released Australian Bureau of Agricultural and Resource Economics and Sciences outlook report predicts that citrus exports will spike to 200,000 tonnes in 2015-16, increasing by 20 per cent in comparison with 2014-15 volumes. This is thanks to increases in production levels, but will be only a temporary bubble in the market with citrus exports expected to decline in 2016-17 as production levels return to average volumes.
Overall, citrus exports are expected to increase from 2015-16 till 2020-21 in response to growing demand from Asian countries and the assumed level of the Australian dollar.
Hong Kong, Japan and China were Australia’s largest export markets for citrus in 2014-15 and exports to Asian markets, particularly China, have grown significantly in recent years, while exports to the US have declined to one-quarter of the levels of the previous decade.
The Australian horticulture industry as a whole was discussed in the ABARES outlook report, which found the gross value of horticulture production in Australia is expected to increase from $9.3 billion in 2014-15 to $10.2 billion in 2020-21 and exports are expected to increase from $2.1 billion in 2014-15 to $2.2 billion in 2020-21.
Apple production will remain around 300,000 tonnes until 2020-21 and banana production should continue to fluctuate around the 10-year average of 260,000 tonnes in the period to 2020-21.
The report found vegetable production would continue to expand to meet domestic market requirements, with some increase in export demand, to reach $4.2 billion by 2020-21.
The Australian dollar is projected to remain relatively weak over the medium term, so the value of vegetable exports is projected to increase by 10 per cent to $325 million in 2015-16 and to increase steadily to around $350 million in 2020-21.
Almost 60 per cent of Australia’s vegetable exports in 2014-15 were fresh. Carrots, potatoes, onions, asparagus and vegetable seeds contributed most to the value of exports in 2014-15 and New Zealand, Japan, Singapore and the United Arab Emirates were the major destinations.
Source: weeklytimesnow.com.au