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 expected to remain unchanged in 2016-17 from five years earlier, at $5.50 billion. High local wages and overheads compared with overseas producers have prompted firms to relocate processing facilities offshore to consolidate operations and lower costs. High domestic wages and compliance costs have been undermining the international competitiveness of local players. Industry revenue is expected to dip 1.1% over 2016-17.
Imports have surged as a proportion of domestic demand over the past five years. A strong Australian trade-weighted index until late 2013 spurred import penetration at the beginning of the period... purchase to read more
Industry Report - Industry Analysis Chapter
Australian fruit and vegetable processors have battled difficult trading conditions over the past five years as the local market has continued to be flooded with cheap products manufactured overseas. This has restricted demand for domestic processed fruit and vegetables, and put downward pressure on prices for local manufacturers, hampering revenue growth. Supermarkets have been dominating the supply chain and have increased shelf space dedicated to private labels, stifling industry 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 subsequent industry revenue growth... purchase to read more