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Asian Vegetable Industry a Situation Assessment

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Asian Vegetable Industry A Situation Assessment A report for the Rural Industries Research and Development Corporation by Hassall & Associates Pty Ltd February 2003 RIRDC Publication No 02/168 RIRDC Project No HAS-10A © 2003 Rural Industries Research and Development Corporation. All rights reserved. ISBN 0 642 58567 9 ISSN 1440-6845 Asian Vegetable Industry Situation Assessment Publication No. 02/168 Project No.: HAS-10A The views expressed and the conclusions reached in this publication are those of the author and not necessarily those of persons consulted. RIRDC shall not be responsible in any way whatsoever to any person who relies in whole or in part on the contents of this report. This publication is copyright. However, RIRDC encourages wide dissemination of its research, providing the Corporation is clearly acknowledged. For any other enquiries concerning reproduction, contact the Publications Manager on phone 02 6272 3186. Researcher Contact Details Hassall & Associates Pty Ltd Lvl 4, 52 Phillip Street, Sydney, NSW, 2000 (GPO Box 4625, Sydney, NSW, 1044) Phone: 02 9241 5655 Fax: 02 9241 5684 Email: [email protected] In submitting this report, the researcher has agreed to RIRDC publishing this material in its edited form RIRDC Contact Details Rural Industries Research and Development Corporation Level 1, AMA House 42 Macquarie Street BARTON ACT 2600 PO Box 4776 KINGSTON ACT 2604 Phone: 02 6272 4539 Fax: 02 6272 5877 Email: [email protected]. Website: http://www.rirdc.gov.au Published in February 2003 Printed on environmentally friendly paper by Union Offset ii Foreword The Australian Asian vegetable industry is a dynamic, growing horticultural sector whose products appeal to Australian consumers. The industry has more than doubled in production value and grower numbers since 1995. It has also doubled its share of total Australian horticultural production. Many of the industry’s products are on the verge of becoming mainstream staples and product is available through a wide variety of outlets. In 1995 Rural Industries Research and Development Corporation published an Audit of the Australian Asian Vegetables Industry. This study, completed in October 2002, highlights changes in the Australian Asian vegetable industry since that original audit report. It provides an assessment of the current Australian Asian vegetable industry situation and assesses the industry’s future directions. The project was funded from RIRDC Core Funds which are provided by the Federal Government, with varying levels of co-funding from the cooperating institutions. This report, a new addition to RIRDC’s diverse range of over 900 research publications, forms part of our Asian Foods R&D program, which aims to support industry in its drive to develop new products and markets and to gain competitive advantage through improving productivity in, and achieving price premiums for, Australian production. Most of our publications are available for viewing, downloading or purchasing online through our website: • downloads at www.rirdc.gov.au/reports/Index.htm • purchases at www.rirdc.gov.au/eshop Simon Hearn Managing Director Rural Industries Research and Development Corporation iii Acknowledgments Hassall & Associates wish to acknowledge the assistance of the following individuals with the compilation of this report: • Ralph Cadman, Cadman Agribusiness Services for profiling the Victorian Industry; • Wendy Morgan, Department of Natural Resources and Environment for advice and assistance with report editing; • Barry Lee, Connectica International for providing project advice and report editing; and • Grant Vinning, Asian Markets Research for profiling the Queensland industry. Abbreviations CQU Central Queensland University DBIRD Department of Business, Industry and Resource Development (Northern Territory) DPIWE Department of Primary Industry, Water and Environment (Tasmania) HAL Horticulture Australia Limited HACCP Hazard Analysis Critical Control Point IHD Institute of Horticultural Development, Knoxfield Victoria MAP Modified Atmosphere Packaging NORADA Northern Rivers Agricultural Development Association NESB Non English Speaking Background NRA National Registration Authority for Agricultural and Veterinary Chemicals NRE Victorian Department of Natural Resources and Environment PIRSA Primary Industries and Resources South Australia PLU Price Look Up categorisation system used by supermarkets iv Contents Acknowledgments iv Abbreviations iv Executive Summary vii 1. Introduction 1 1.1 Study Background 1 1.2 Purpose of the Study 2 1.3 Methodology 2 1.4 Report Structure 2 2. Industry Profile by State and Region 3 2.1 New South Wales 3 2.2 Victoria 11 2.3 Queensland 21 2.3 South Australia 30 2.4 Western Australia 33 2.5 Northern Territory 38 2.6 Tasmania 42 3. Key Characteristics of the Australian Industry 46 3.1 Industry Location 46 3.2 Major Vegetables 46 3.3 Industry Size – Wholesale Value and Grower Numbers 47 3.4 Industry Share of National Vegetable Production 47 3.5 Markets and Market Trends 47 3.6 Product Form 50 3.7 Seed Production 50 3.8 Product Yield and per Hectare Income 51 3.9 Market Chain and Practice 51 3.10 Farm Profile and Practice 52 3.11 Economics of Production 53 3.12 Production Trends and Grower Innovation Since the Mid 1990s 53 3.13 Grower Organisations and Communication 54 3.14 Government Support and Levies 56 3.15 SWOT- Description of Industry Positive and Negative Themes 56 3.16 Issues Impacting on the Supply of Produce 58 4. Review of Supply Chain Issues 59 4.1 Darwin growers shipping to southern markets 59 4.2 Sydney growers supplying Flemington markets 60 4.3 Exporters adopting HACCP principles 60 4.4 Spoilage rates and retail management in Victoria 61 4.5 Concluding comment on supply chain issues 61 5. Research Uptake 62 5.1 Research Uptake 62 5.2 Factors Inhibiting or Facilitating Research Uptake 63 5.3 Concluding comments on research 63 6. Capability, Future Direction and Study Conclusions 65 6.1 Industry Capability and Progress Since the Mid-1990’s 65 6.2 Study Conclusions, Future Direction and Recommendations 66 7. Reference List Including Websites 67 8. Industry Contacts 70 APPENDIX 1: MAJOR ASIAN VEGETABLES BY STATE 80 v List of Tables Table 1: Industry Profile – An Industry with Two Types of Grower..................................................vii Table 2: Value Estimates for NSW Asian Vegetables for Financial Year 1993/94........................... 4 Table 3: Flemington Markets (Sydney) Asian Vegetable Sales by Value and Volume 1993/94...... 5 Table 4: Flemington Markets (Sydney) Asian Vegetable Sales by Value and Volume 2000, 2001. 5 Table 5: Exports of Fresh Asian Vegetables from NSW (1997/98) .................................................. 6 Table 6: NSW Asian Vegetable Grower Association Membership................................................... 7 Table 7: Melbourne Asian Vegetable Sales by Value and Volume 1993/94 .................................. 12 Table 8: Melbourne Asian Vegetable Sales by Value and Volume 2000/2001 .............................. 13 Table 9: Exports of Fresh Asian Vegetables from Victoria (1997/98)............................................. 14 Table 10: Value Estimates for Queensland Asian Vegetables for Financial Year 1993/94 ............. 23 Table 11: Queensland Asian Vegetable Sales by Value and Volume – Brisbane Wholesale Markets and Estimated Queensland Total (2001) ............................................................ 24 Table 12: Exports of Fresh Asian Vegetables from QLD (1997/98) ................................................. 26 Table 13: Inter-state Asian vegetables competing with Queensland Asian vegetables................... 27 Table 14: Value Estimates for South Australian Asian Vegetables for Financial Year 1993/94 ...... 30 Table 15: Adelaide Asian Vegetable Sales by Value and Volume Calendar Year 2000 and 2001.. 31 Table 16: Exports of Fresh Asian Vegetables from SA (1997/98).................................................... 32 Table 17: Value Estimates for Western Australian Asian Vegetables for Financial Year 1993/94 .. 33 Table 18: Perth Asian Vegetable Sales by Value and Volume Calender Years 2000 and 2001 (Perth Markets only).......................................................................................................... 34 Table 19: Sales Data from Perth Markets for Financial Years 1998/99 to 2000/01 ......................... 34 Table 20: Exports of Fresh Asian Vegetables from WA 1997/98 and 2000/01 ................................ 35 Table 21: Western Australian Grower and Farm Profile................................................................... 37 Table 22: Value Estimates for Northern Territory Asian Vegetables for Financial Year 1993/94 .... 39 Table 23: Northern Territory Asian Vegetable Sales by Value and Volume 2000............................ 39 Table 24: Value Estimates for Tasmanian Asian Vegetables for Financial Year 1993/94 ............... 43 Table 25: Estimated Asian Vegetable Sales of Value and Volume 2001......................................... 44 Table 26: Major Asian Vegetables by State 2002............................................................................. 46 Table 27: Industry Value and Grower Numbers 1993/94 and 2000/01 ............................................ 47 Table 28: Percentage of Asian Vegetables Sold through the Central Market System..................... 48 Table 29: Exports relative to total production (tonnes) ....................................................................
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