While some growers of vegetables for processing are under pressure from imports, this is not the case across the entire industry, conference delegates were told by Ms Karen Schneider, Deputy Executive Director, ABARE, at OUTLOOK 2006.

‘Fresh imports are negligible and while competition is increasing in processed vegetables and fresh vegetable export markets, Australian growers are generally coping with the pressure of competition,’ Ms Schneider said.
This is the story from a major ABARE research project that looked at production data, retail turnover data, and included an economic survey of vegetable growers.

Import penetration is restricted to the processed vegetables market. For example, processed vegetable imports are equivalent to 16 per cent of Australia’s processed vegetable production. This is in contrast to the fresh market where more than 95 per cent of vegetable turnover is Australian grown.

Ms Schneider told delegates that while Australian growers are generally competitive internationally, there is a wide variation in costs of production. Compared with high cost producers, low cost producers tend to be bigger, generate more farm income and a higher rate of return to capital, and are generally more positive about their future in the industry.

Not withstanding these results, the industry will need to continually innovate to secure a positive future.
Ms Fiona Chambers, General Manager, Fernleigh Farms told delegates that her business has continued to use a personalised approach to marketing both in export and domestic markets to achieve ongoing business viability.
‘The business strategy that we’ve found to be highly successful is the development of personal relationships as the foundation for effective marketing,’ Ms Chambers said.

Mr Richard Hamley from Yandilla Park Ltd, discussed an alternative approach to improve productivity.
‘Our approach has been to use cutting edge technology in growing and packing our produce. While these technologies are suited to very large farms, as we learn more about these technologies, I expect there will be trickle down benefits for smaller growers,’ he said.