A global comparative analysis project has shown that when compared with China, the Australian industry must move quickly to improve its international competitiveness.
The study was initiated by the Australian Vegetable Industry Development Group (AVIDG) and funded by the vegetable industry's R&D levy.
The project involved extensive on-ground research within China and was completed with the active involvement of the Vegetable Industry Exporter Network, which includes some of Australia's leading vegetable exporters.
The project focused primarily on China and investigated current trends relating to international trade in fresh and processed vegetables.
The findings show a steady growth in international trade in vegetable products, dominated by supply from China, whose exports have risen from $US2 billion to $US5bn during the past 10 years.
"While international trade is expanding, Australian vegetable exporters are losing market share overseas and imports are rising. Australia's exports have fallen by 50pc since the peak in 2003 and now represent less than 10pc of the industry's gross value of production," says AVIDG chairman, Richard Bovill.
China has low labour costs and supportive government policies on rural development that have helped to sustain this growth.
China continues to gather momentum as a major vegetable exporter, increasingly driven by large well-resourced businesses that are addressing issues relating to productivity, environmental constraints and food safety.
The study also found that China presents few opportunities to Australian vegetable exporters. Small niches exist for premium offerings in affluent urban areas.
The report from the Global Comparative Analysis Foundation Project can be read or downloaded from the AVIDG website by visiting www.avidgroup.net.au
Email a friend