Industry Analysis & Industry Trends
Rising import penetration and soaring local operating costs have plagued the Fruit and Vegetable Processing industry over the past five years. Industry revenue is anticipated to fall by an annualised 0.7% over the five years through 2013-14. Relatively high local wages and overheads have increased the threat of relocating processing facilities offshore, as major players attempt to consolidate operations and lessen costs. Chronic supply-side issues hampered by adverse weather conditions have increased input prices, thereby undermining the competitiveness of local players. In 2013-14, industry revenue is forecast at $5.5 billion, which represents a 2.5% decrease on the previous year... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a medium level of capital intensity. For every dollar paid as capital, an estimated $4.24 is spent on wages. Wages represent labour costs, and depreciation is used as a proxy for capital expenditure. Capital intensity has been increasing as firms, particularly the larger players, have invested in new technologies with lower labour requirements. High-speed production lines are dramatically lifting throughput, allowing fruit and vegetable processors to raise production without corresponding increases in employment. Despite this, capital intensity varies across the industry. For example, canning and bottling operations tend to employ large quantities of capital equipment.
The number of processed product options has increased dramatically over the past five years... purchase to read more