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Australian vegetable farm profitability improved in 2006-07

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Australia
January 30, 2009

Source: AUSVEG

The combined effects of a rise in the quantity of vegetables sold and higher vegetable prices led to a 51 per cent increase in farm cash incomes for vegetable farms, on average, in 2006-07.

However, the costs associated with vegetable production rose substantially, especially in relation to fuel and fertiliser, in 2007-08. This and lower prices for vegetables are likely to have adversely affected the financial performance of vegetable growing farms in 2007-08.

The report Australian vegetable growing farms: an economic survey, 2006-07, was released today by Phillip Glyde, Executive Director, ABARE and John Webster, Managing Director, Horticulture Australia Limited (HAL).
“With an improvement in seasonal conditions in 2006-07 for vegetable growing in Australia, vegetable crop yields were generally higher and the average farm cash income rose to an estimated $237,600 per farm in that year,” said Mr Glyde.

This report presents results from a survey conducted by ABARE of 287 vegetable growers that was undertaken in September 2008 and presents estimates of production, socioeconomic and financial characteristics of vegetable farms during 2006-07.

“It is absolutely essential that the industry has data in three critical areas: production, trade and financial performance. This information enables the industry to effectively engage with policy-makers, legislators, the media and the Australian community to ensure the industry operates within a supportive environment,” Mr Webster said.

This is the first of three surveys commissioned by HAL using the vegetable levy and matched funding from the Australian Government. The surveys support a key strategy of the vegetable industry strategic plan: to have advanced industry data and information systems to meet future needs and to set a strategic direction for the industry.

AUSVEG Chair, John Brent, said he was pleased with the level of participation in the first survey and encouraged growers to engage in the next round of data collection which will commence on 28 February.

 

 

 

 

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