A new report released by Hort Innovation and the Centre for International Economics suggests that increased adoption of productivity-enhancing innovations could add approximately $1 billion annually in value to the Australian horticulture sector, bringing its total value added to an estimated $22 billion by 2040. The industry, currently valued at $8 billion in value added, comprises over 12,000 businesses and is considered to be at a critical point where productivity gains will be key to future profitability.
© Hort Innovation
Hort Innovation CEO Brett Fifield
The Factors Driving Productivity report identifies four priority areas to accelerate growth: improving capability in production cost analysis, automating data collection, applying artificial intelligence insights, and scaling up mechanisation and automation. Over the past 30 years, horticulture productivity has grown at an annual rate of 0.5% to 1.5%, compared to 0.88% in the broader agricultural sector.
Hort Innovation CEO Brett Fifield stated that the report outlines key focus areas for growers and includes examples of producers already implementing technology-led approaches. According to Fifield, there is a broad industry interest in improving efficiency, particularly through more effective data use and increased automation, regardless of business size. He added that while existing R&D projects are already exploring these areas, further investment is needed in response to grower requirements.
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Harrison Rowntree of Longridge Olives
The report includes commentary from grower Harrison Rowntree of Longridge Olives, who described efforts to improve operational efficiency on his family's farm. He emphasised the importance of developing cost-effective practices to maintain profitability under variable market conditions and noted that automation and optimisation will continue to be central to their business strategy.
The report is accompanied by an Excel-based tool designed to help growers and stakeholders model different productivity scenarios and adoption rates across the industry.
© Hort InnovationFor more information:
Shannon O'Mara
Hort Innovation
Tel: +61 427 142 537
Email: [email protected]
www.horticulture.com.au
