The industry has benefited from rising health consciousness and increasing fruit consumption
Melbourne, Australia (PRWEB) June 25, 2013
The Citrus, Banana and Other Fruit Growing industry in Australia has struggled with the increasing incidence of adverse weather conditions over the past five years, including drought, Cyclone Yasi in 2011 and record flooding across Australia's eastern states in 2010-11. Nonetheless, industry revenue is expected to grow by 3.4% over the five years through 2012-13. Many farmers were able to replant crops soon after the wet conditions of 2010-11. The industry also benefited from growth in overall fruit consumption in Australia. Revenue is expected to grow by 7.8% in 2012-13, reaching $2.4 billion. According to IBISWorld industry analyst Emily Witham, “A key advantage for the industry has been the ongoing popularity of major products such as bananas and citrus fruits, which are purchased by over 90.0% and over 67.0% of Australian households, respectively.”
The industry displays a low level of concentration compared with other sectors of the Australian economy. “Establishment and enterprise numbers are large, reflecting the small scale of many farms in the industry,” says Witham. There are a only handful of large corporate players that have extensive farming operations, such as CostaExchange Ltd and Select Harvest Ltd.
The Citrus, Banana and Other Fruit Growing industry in Australia is expected to flourish over the next five years. Industry profit is also expected to expand over this period, reflecting economies of scale associated with increasing output. Factors contributing to industry growth will include stable demand for industry products on domestic and global markets and an increase in spending on fruit. The industry has been assisted by greater water availability, increasing production, and growth opportunities stemming from the increasing popularity of premium organic produce. The major impediments to growth over the next five years are expected to be the risk of competing with low-cost foreign imports and the possibility of extreme weather due to adverse climate cycles.