Industry Analysis & Industry Trends
Soaring import penetration and high operating costs have plagued the Fruit and Vegetable Processing industry over the past five years. Industry revenue is anticipated to fall by an annualised 0.6% over the five years through 2015-16. High local wages and overheads compared with overseas producers have led to firms relocating processing facilities offshore as major players attempt to consolidate operations and lower costs. High domestic wages and compliance costs are undermining the international competitiveness of local players. In 2015-16, industry revenue is forecast to total $5.6 billion, representing a 1.4% decrease on the previous year.
Imports have surged as a proportion of domestic demand over the past five years. A... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a medium level of capital intensity. For every dollar spent on capital, an estimated $4.20 is spent on wages. Wages represent labour costs and depreciation is used as a proxy for capital expenditure. Capital intensity varies across the industry. For example, canning and bottling operations tend to need more capital equipment.
Industry operators employ more workers during fruit and vegetable harvesting periods as processing must occur shortly after harvest while the produce is still fresh. Wage costs are higher in Australia compared with international manufacturers in countries such as China. Capital intensity has been increasing as firms, particularly larger players, have invested in new technologies with lower labour requirements... purchase to read more