Industry Analysis & Industry Trends
As demand for fruit is largely steady, the performance of the Citrus, Banana and Other Fruit Growing industry fluctuates in line with weather conditions that affect supply. Over the past five years, changing weather conditions have led to revenue volatility. Overall, IBISWorld forecasts that industry revenue will grow at an annualised 1.3% over the five years through 2015-16, assisted by significant growth in exports. The industry started the period at a low base, as flooding and cyclones (particularly in Queensland) destroyed crops in 2010-11. Many farmers replanted crops soon after the wet conditions of 2010-11, which limited the spillover effect in the following year. Industry revenue is forecast to contract 1.0% in 2015-16 to $2.5... purchase to read more
Industry Report - Industry Investment Chapter
The industry's wage costs compared with depreciation indicate a highly capital-intensive industry. For every dollar spent on wages for hired labour, the average industry operator spends an estimated $0.36 on capital items. However, the industry's wage costs do not include imputed wages of farm owners. Many owner-operators rely on drawings from profit for their income, rather than a traditional wage. Consequently, the industry's wage costs underrepresent its reliance on labour. When imputed wages are accounted for, it becomes clear the industry is moderately capital intensive.
The level of capital intensity is expected to rise in the next five years. Labour requirements will fall as the industry moves towards more intense production systems... purchase to read more