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 SWOT Analysis Chapter
Australia's Fruit and Vegetable Processing industry is in the decline phase of its life cycle, as indicated by weak growth in industry value added, falling establishment numbers, minimal product innovation and limited technological change.
Industry value added (IVA) is a measure of an industry's contribution to the wider economy. Over the 10 years through 2021-22, IVA is forecast to rise by an annualised 1.3%. Comparatively, GDP is forecast to grow by 2.5% annualised over the same period. This indicates that the industry's contribution to GDP is falling. Challenges for the industry include increasing competition from imported and private-label products, market saturation and volatile input prices... purchase to read more