Australian vegetable grower representative body Ausveg has emphasised the increasing business potential in Asian markets, according to a media release put out today.
In the past five years, Australian vegetable exports to South Korea and China have doubled to A$9m (US$8.36m) and A$2m (US$1.86m) respectively.
“Global population growth and a more affluent middle class in Asia are the primary forces driving demand for vegetables,” said Ausveg's Andrew White, manager of Industry Development and Communications.
“There are predictions that higher income consumers in Asia will spend up to five times more on high quality food products compared to lower income brackets, which underpins the growth opportunities available for the Australian vegetable industry.'
Studies undertaken for the industry as part of its Strategic Investment Plan suggest that exporting provides the msot significant opportunities for returns on investments in research and development.
This research project has been funded through Horticulture Australia Ltd (HAL) using the National Vegetable Levy, which has been augmented with matching government funds.
“Expanding international exports is likely to underpin the growth of the vegetable industry in the next ten years. Only four per cent of vegetable growers currently sell vegetables for export, so the potential for expansion is very high,” said White.
“The industry is currently conducting research to get growers export ready, providing them with an appreciation of the opportunities and an understanding of the viability of various export markets.
'Developing growers’ capacity to establish their products and grow in these markets over time is imperative.”
For the past seven years, vegetable exports have remained constant in spite of the high Australian dollar, which has begun to fall, making export markets more viable.
White also pointed to Australia's location as giving it 'a geographical edge in terms of shipping costs and delivery times'.
Ausveg represents approximately 9,000 vegetable growers in Australia.
