AU: Citrus, banana and other fruit expected to flourish
The industry is expected to flourish over the next five years to 2016-17. Forecast factors contributing to growth are stable demand for industry products on domestic and global markets, an increase in fruit consumption expenditure, greater water availability, increasing production and growth opportunities stemming from the increasing popularity of premium organic produce. Rowley adds, "The major impediments to growth over the next five years are projected to be the risk of competing with low cost foreign imports given Australia's obligations under World Trade Organization rules and the possibility of further extreme weather patterns given the possible onset of climate change".
The Citrus, Banana and Other Fruit Growing industry has a low level of market share concentration compared with other sectors of the Australian economy. Like most horticultural industries, fruit growing comprises many small-size participants although concentration does vary. Chiquita dominates the blueberry segment and is also one of Australia's largest banana growers. The almond segment is dominated by Select Harvests. However, most segments comprise a large number of small operators. The presence of many low-value establishments is partly explained by the small tracts of land required for fruit growing. Average farm and orchard sizes are increasing as rising input costs and lower returns erode profitability for small operators. The move towards large-scale production should see more corporate players enter the industry in future years.
Source: sfgate.com