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 - Starting a New Business Chapter
Barriers to entry vary across the different segments of the industry. Establishment and advertising costs represent the major obstacles facing new entrants. Establishment costs include the construction or purchase of a processing facility, warehouse, plant and equipment. These costs are particularly high in canning operations, which are considered capital-intensive. Branding is advantageous, particularly for products in the mid to high end of the market. Major firms like SPC Ardmona and McCain regularly invest heavily in advertising campaigns to maintain strong brands. New entrants need to expend significant funds into creating a brand image and consumer awareness... purchase to read more