Rising Asian affluence drives demand for Australian vegetable exports

The past five years have seen vegetable exports to China and Korea double to $2 million and $5 million respectively, highlighting the growth opportunities for Australian vegetables in the region, AUSVEG says.

“Global population growth and a more affluent middle class in Asia are the primary forces driving demand for vegetables,” said Andrew White, AUSVEG Manager of Industry Development and Communications.

“There are predictions that higher-income consumers in Asia will spend up to five times more on high-quality food products compared to lower income brackets, which underpins the growth opportunities available to the Australian vegetable industry.

“Expanding international exports is likely to underpin the growth of the vegetable industry in the next 10 years. Only 4% of vegetable growers currently sell vegetables for export, so the potential for expansion is very high.

“The industry is currently conducting research to get growers ‘export ready’, providing them with an appreciation of the opportunities and an understanding of the viability of various export markets. Developing growers’ capacity to establish their products and grow in these markets over time is imperative.”

Vegetable exports have remained steady in the last seven years, despite a high Australian dollar, but the industry believes that Asia holds significant untapped potential, White said. The falling dollar means that exporting to international markets is becoming more viable.

“Australia’s location relative to Southeast Asia gives Australian growers a geographical edge in terms of shipping costs and delivery times,” White said. “For example, within the last five years vegetable exports to Indonesia have risen from $6 million to $11 million and to Papua New Guinea from $3 million to $7 million.

“We are confident that strong economic growth in developing countries is likely to spur demand for vegetables. Developing countries are growing at more than 5% per year while East Asian countries are growing at 7%. The Australian vegetable industry has a great opportunity to ride the wave of growth by providing safe, high-quality products.”

The research project was funded through Horticulture Australia Limited (HAL), using the National Vegetable Levy and matched funds from the Australian Government.