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Light supply leads to good prices for Australian farmers

After a difficult growing year Australian farmers warned that supplies may fall short this year for mangoes and lychees around the Christmas season. While supplies were indeed low, this is not always bad news for farmers.

The bulk of the lychee crop is still to hit the market, and the smaller, later crop is good news for growers who could actually make more than normal.

Australian Lychee Growers Association president Derek Foley said lower-yielding years could bring farmers higher returns if the market conditions line up correctly.

"Sometimes you make more money out of those years where you have say a 60 per cent crop and the price is high," Mr Foley said.

"You're getting a good margin on what you do produce, so in the end profitability is enhanced by that situation."

Mr Foley doesn't see prices falling soon and sees farmers making a good return on their limited harvests heading up to the Chinese New Year.

source: abc.net.au
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