Latest figures show Southern Australia vegetable farm profits down
Average farm profits in South Australia were estimated to be $105,000 in 2013-14, providing limited opportunities for growers to reinvest in what is expected to be an increasingly important industry for the state.
“The South Australian vegetable industry is a key contributor to the South Australian economy, contributing $550 million per annum in gross value and employment in regional areas,” said AUSVEG SA State Manager Mr Jordan Brooke-Barnett.
“With recent ABARES figures showing SA has the highest unemployment figures in the country at 7.3 per cent, it is an industry which must continue to be supported by governments of all levels.”
Vegetable growers are under constant pressure to increase production efficiencies to keep their heads above water in the face of rising input costs while vegetable commodity prices remain fairly static.
“Since vegetable price data was first recorded in 1989, Australia has experienced inflation of 98 per cent, whereas vegetable prices have only risen 65 per cent to 2014. Add to this the fact that energy costs for vegetable growers have doubled in the last decade alone and you can see it is pretty tough situation for our growers,” said Mr Brooke-Barnett.
“In an extremely competitive marketplace, South Australian growers are forced to continually innovate and adapt to ensure they remain viable.”
AUSVEG SA is supporting the South Australian industry to relieve pressure on vegetable operators, while increasing profit and viability, by helping growers develop new markets for fresh produce overseas, assisting growers to implement on-farm R&D and looking at opportunities to develop innovative new uses for fresh produce.
“Innovation is the key to survival in the modern, globalised vegetable industry, and AUSVEG SA is seeing growers explore a number of options to safeguard their businesses such as exploring new varieties, export opportunities and processing their products,” said Mr Brooke-Barnett.
For more information:
Jordan Brooke-Barnett
AUSVEG SA
Tel: 0061 8 8221 5220
Email:jordan.brooke-barnett@ausveg.com.au