ABARES says horticulture to reach $12 billion for 2021-22

March 23, 2022 | 5 Min read
Australian horticulture could reach the second highest value on record this financial year.

According to the federal government's Australian Bureau of Agricultural and Resource Economics and Sciences' (ABARES) March Quarter Agricultural Commodities Report, the value of Australian horticulture this financial year is set to reach the second highest on record. It's given a forecast figure of $12 billion for 2021-22.

That's based on expectations that most fruit and vegetable production over summer and autumn will be plentiful, supported by favorable seasonal conditions and low water prices. Its predictions for the year after are even more rosy with a figure of $12.5 billion reported, a rise of four per cent.

ABARES said if stronger international demand and less supply chain disruptions were realised, as in the faster recovery scenario, the value of production for export focused industries will be higher.

Avocados and berries may experience lower farmgate prices in the medium term due to rising production volumes, according to ABARES. The report said these industries have been focusing on developing export markets to ease that potential drop.

"It is expected that higher exports in the faster recovery scenario will help to dampen price falls in the domestic market for those producers," the report said. "However, disruptions to export logistics and slower international demand assumed in the slower recovery scenario would risk those prospects. In such a case, more supplies having to be traded in the domestic market would cause greater reductions in their farmgate prices. This would lead to falling profit margins that could contribute to greater industry consolidation."

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