The Australian horticulture industry is set to continue to increase its output, according to the March quarter 2017 report prepared by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).
According to the report, Australian horticulture production is forecasted to grow from $9.3bn in 2016/17 to pass $10 billion by 2022.
The two major factors of the increase relate to a growth in domestic demand as well as an increase in exports.
Horticultural exports from Australia are predicted to increase by 22.2 per cent over the six year period, from $2.7 billion in 2015/16 to $3.3 billion in 2021/22.
The report suggests that competitiveness of Australian horticultural exports has increased in correlation with the reduction in tariffs associated with Australia’s trade agreements with Japan, China, and the Republic of Korea.
According to the report, in the 12 months after the China-Australia Free Trade Agreement entered into force in December 2015, horticultural exports to China rose by 68 per cent compared with the previous 12 months.
The report also outlined that exports to Korea doubled in the two year period following the late-2014 implementation of the Korea-Australia Free Trade Agreement.
The rate of growth is expected to increase in response to further reductions in and eliminations of import tariffs.
The forecast considers production across fruit and nuts (to the exclusion of grapes produced for wine), vegetables, and nursery, flowers and turd. The rate of growth in value of fruit and nuts and vegetables is predicted to increase, while the rate of increase in value of nursery products, cut flowers, and turf is expected to remain as it is.
To read the full report, visit http://bit.ly/2pvcVvP
Ebony Graveur 