According to the NSW Department of Primary Industries, state vegetable businesses grow more than 3.4 million tonnes of produce every year. Valued at around $2.2 billion, this is a significant part of both the state and national economy.
Due to these statistics and the fact that the horticulture industry as a whole is a major employer, it is important business leaders in the vegetable sector remain buoyant in their potential growth moving forward. In fact, this was one of the findings out the most recent Economic Confidence Survey published by AUSVEG.
Significant confidence rise
AUSVEG noted that overall confidence increased a massive 19 per cent in the December 2015 quarter alone. While this is an impressive figure in itself, it marks a 124 per cent rise from the initial survey period nine months earlier.
Breaking these figures down, vegetable growers indicated a particular confidence rise in government policy (35.5 per cent) and investment (28.8 per cent). AUSVEG also saw increases in other categories such as macroeconomic confidence (5.29 per cent) and market confidence (5.25 per cent).
AUSVEG Economist Andrew Kruup believes the survey results could be sign that growers are in a good position to invest in business functions – furthering improving productivity and profitability.
“Australian vegetable growers are becoming more optimistic about the current economic climate,” he said.
“Growers must take all of these factors into account when developing plans for business investment. This increase in confidence is a positive sign that growers could be more willing to invest in their businesses, which could create jobs and strengthen the economic status of the Australian vegetable industry as well as the national economy.”
Vegetable export potential expands
Exports represent a massive opportunity for growth as many Asian countries try to feed their increasing middle class.
While vegetable growers serve the Australian community with fine produce, there is also great demand from offshore. For business leaders, exports represent a massive opportunity for growth as many Asian countries try to feed their increasing middle classes.
In August, AUSVEG noted that vegetable exports grew 5 per cent between 2013-14 and 2014-15 ($256 million to $270 million). The organisation cited Singapore and the United Arab Emirates where exports increased 29 and 24 per cent respectively.
Riding the wave of confidence
With exports only expected to swell and domestic confidence high, now is the time for Australian vegetable businesses to invest in new technology and products. This is certainly where Eco Pallets can shine.
As a provider of industry-leading hygienic and environmentally-friendly pallets, we can ensure your enterprise is ready distribute high-quality products across Australia and around the globe.
For more information on our product range, contact our friendly team today.