Australia
September 30, 2009
Although adverse seasonal conditions in many vegetable growing regions in 2007-08 led to a fall in average yields and lower vegetable production, average farm cash incomes of vegetable farms declined by only 3 per cent.
This and other findings are contained in the report Australian vegetable growing farms: an economic survey, 2007-08, released today by ABARE Deputy Executive Director, Dr Terry Sheales.
“Despite a rise in average prices received for vegetables in 2007-08, overall receipts from the sale of vegetables fell by 6 per cent on average as seasonal conditions resulted in lower yields and production,” Dr Sheales said.
“Fortunately, increased receipts from other enterprises operated by vegetable farmers in 2007-08 helped to partly offset the fall in vegetable receipts, resulting in an estimated average farm cash income of $166 100, some $5900 less than in 2006-07.
Another factor identified in the report as contributing to a lower average farm cash income in 2007-08 was an increase in average cash costs, of 2 per cent, because of higher costs for inputs such as fertiliser.
The study also reveals that 86 per cent of vegetable growers saw increased farm input costs as an impediment to the future viability of their businesses.
At the same time, growers were positive about the future, with 72 per cent of growers expecting to be still engaged in vegetable growing in five years’ time and 31 per cent planning to expand vegetable production in the next three to five years.
The report presents results from the second of three ABARE surveys of vegetable growers funded by Horticulture Australia Limited using the vegetable levy and matched funding from the Australian Government.
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