AU: Costs put crunch on carrot growers’ profits
The latest data illustrates that carrot growers’ returns, on average, have been falling since 2007-08.
“This clearly shows that Australian carrot growers have been struggling for at least half a decade with returns trending downwards,” said Mr Shaun Muscat, AUSVEG Economist.
Rising production costs have undoubtedly been squeezing carrot growers the most, with financial outlays outpacing the prices growers are receiving for their produce.
“For example, from 2007-08 to 2011-12, average domestic carrot prices fell by 24 per cent, while average costs increased by 42 per cent,” said Mr Muscat.
The significant rise in production costs is a familiar story and isn’t an isolated issue for carrot growers, with production costs for most vegetables increasing, particularly in the last five years.
“Australian carrots are a key and important industry, feeding people in Australia and around the world. Carrots and turnips were Australia’s largest exported vegetable commodity, representing over 20 per cent of all vegetables exported in 2012-13,” said Mr Muscat.
In 2013-14, Australia exported approximately $56 million worth of carrots, a 9 per cent increase from the previous year.
Australia’s largest carrot exporting destination was the United Arab Emirates, totalling $17 million. Australia also exported carrots to Singapore ($9 million), Malaysia ($7 million) and Saudi Arabia ($7 million).
For more information:
Shaun Muscat
AUSVEG
Tel: +61 (03) 9882 0277
E-mail: shaun.muscat@ausveg.com.au