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 Analysis Chapter
Australian fruit and vegetable processors have batted difficult trading conditions over the past five years as the local market has continued to be flooded with cheap products manufactured overseas. This has both restricted demand for domestic processed fruit and vegetables and put downward pressure on prices for local manufacturers, hampering revenue growth. Supermarkets have increasingly dominated the supply chain and increased the amount of shelf space dedicated to private labels, stifling revenue growth. Several supply contracts for private labels have been allocated to foreign manufacturers with low overheads. While some local processors such as SPC have secured contracts, the proliferation of private labels has constrained prices and subsequently revenue growth... purchase to read more