Industry Analysis & Industry Trends
Over the past five years, unfavourable weather conditions have negatively affected the Citrus, Banana and Other Fruit Growing industry. Production output was severely constrained by flooding and cyclones, particularly in Queensland, which has contributed to revenue volatility over the past five years. Many farmers were able to replant crops soon after the wet conditions of 2010-11, which limited the spillover effect into the following year. Revenue is projected to fall by an annualised 1.7% in the five years through 2014-15, to reach $2.4 billion. However, industry revenue is forecast to recover and post growth of 1.8% in 2014-15. A... purchase to read more
Industry Report - Industry Investment Chapter
The industry exhibits moderate levels of capital intensity. For every dollar invested in labour, an estimated $0.33 is spent on capital. Capital intensity has been rising as more advanced equipment is introduced to monitor planted areas, test the soil and water crops. Fruit growing, like many other agricultural industries, requires advanced irrigation systems, mechanical harvesters and other capital equipment to operate efficiently.
The level of capital intensity is expected to rise in the next five years. Labour requirements are expected to fall as the industry moves towards more intense production systems. This process will be assisted by the development of new rootstocks that will produce fruit trees that are easier to harvest and spray, thereby reducing labour costs... purchase to read more