A key advantage for the industry has been the ongoing popularity of bananas and citrus fruits.
Melbourne, Australia (PRWEB) March 30, 2015
Over the past five years, unfavourable weather conditions have constrained revenue growth for the operators in the Citrus, Banana and Other Fruit Growing industry in Australia. Production output was severely constrained in 2010-11 by flooding and cyclones, particularly in Queensland, which contributed to revenue volatility over the past five years. According to IBISWorld industry analyst Brooke Tonkin, “many farmers were able to replant crops soon after the wet conditions of 2010-11, which limited the spillover effect into the following year.” Revenue is projected to grow at an annualised 0.5% over the five years through 2014-15, to reach $2.7 billion. Industry revenue is forecast to grow 3.7% in 2014-15. A key advantage for the industry has been the ongoing popularity of major products, such as bananas and citrus fruits, which has been reinforced by government initiatives that promote a daily intake of fruit and vegetables.
Industry exports have trended upwards over the past five years, as domestic growers have benefited from their reputation for quality produce. “The industry also maintains a competitive advantage due to its counter-seasonal harvesting periods relative to other exporting nations,” says Tonkin. Greater emphasis on controlling unit costs and increasing efficiency are beneficial in maintaining competitiveness, particularly compared with other growing regions that operate with a lower cost base. Imports are expected to grow over the five years through 2014-15. This growth has been driven by the major supermarket chains, which aim to offer customers a variety of fresh produce all year round. Downstream food processors have also driven demand for fruit imports. However, imported fruit used by food manufacturers has come under scrutiny, following a hepatitis A outbreak in February 2015. The industry displays a low level of market share concentration. Major players include Costa Group Holdings Pty Ltd.
Demand for industry produce is projected to be buoyed by ongoing health consciousness and Australia's ageing population, as people in the older age brackets tend to consume more fruit. The Citrus, Banana and Other Fruit Growing industry has substantial growth prospects in export markets, particularly in Asia where population and income growth rates are high. However, competition in the international market will remain fierce. Increasing operational efficiency and the maintenance of product quality are imperative to compete on the global stage.
For more information, visit IBISWorld’s Citrus, Banana and Other Fruit Growing industry in Australia report page.
This industry includes farmers that grow bananas, pineapples, citrus fruit, tree nuts and other fruit.
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IBISWorld industry Report Key Topics
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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