HORTICULTURE

The Australian vegetable production sector is an important supplier of food to the domestic market, supplying most of the fresh vegetables consumed in Australia and also providing vegetable inputs for a large proportion of the processed vegetable products consumed in Australia and exported overseas.

Over the period 1999-2000 to 2006-07, vegetable growing accounted for an average of around 7% of the gross value of Australia’s agricultural production. It is estimated that the gross value of vegetable production in Australia was around $3.1 billion in 2006-07. The gross value of vegetable production in 2008-09 was around $3.5 billion (ABARE, September 2009).

The industry is characterised by a diversity of products, locations, production and distribution systems, business types and markets. Australia produces a wide variety of vegetable crops made possible through variations in climate, soil types and water availability in both northern and southern Australia.

The average area operated by vegetable growers in 2007-08 is estimated to have been 189 hectares a farm. The average area sown to vegetables remained at approximately 29 hectares a farm in 2007-08.

The industry is vitally important to regional economies in providing employment opportunities across the supply chain and revenue for allied businesses that supply goods and services to the industry.

The products of the vegetable industry include whole fresh vegetables; packaged fresh cuts, frozen and canned vegetables and vegetable products; and vegetable ingredients used in beverages and other processed and functional foods.

The industry supplies consumers through strong wholesale, retail, food service and direct farmers’ market sectors. It comprises a broadly based and highly commercial supply chain of nursery suppliers, growers, packers, processors, marketers, wholesalers, agents, providores, retailers, food service companies and exporters.

Moreover, it is serviced by many commercial suppliers of inputs, equipment, transport services, capital and advisory services that are important not only to the industry, but also to the communities in which they are located.

The Australian Government provides policy, regulatory, quarantine, industry program services and levy collection services to the industry. The government pays revenue collected from growers through levy arrangements, along with a matching contribution, to Horticulture Australia Limited (“HAL”) to provide research and development funding on behalf of product groups. State governments provide regulatory, research, information and training services particularly to the growing sector.

Representational, policy, advocacy, information and member services are provided by a large number of industry organisations which have been established for different product groups and business sectors across the supply chain.