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Insights January 2020

6 January 2020 |Horticulture
Workers in the field

Insights January 2020

6 January 2020 |Horticulture

Overview

  • Smoke damage is a looming concern for wine makers in New South Wales, South Australia and Victoria.
  • Bushfire damage in apple producing regions is expected to put pressure on supply.

Wine grapes in both New South Wales, South Australia and Victoria have been impacted by fire and smoke. Direct fire damage has been more prevalent in the Adelaide Hills with almost one third of the region’s wine grapes damaged.
In New South Wales and Victoria, it will take longer to assess the impact of smoke taint on this year’s vintage. Both scenarios have the potential to push wine grape prices higher in the coming months with flow on effects to
wine export volumes and values in the coming year.

Apple prices are expected to increase in the coming weeks amplified by the impact of bushfires on local orchards.

December prices averaged 18.7 per cent higher than yearago levels, driven by a smaller volume of fruit, combined with bushfire damage this could mean significant increases to price in the coming months.

Leafy vegetable prices are expected to continue to move higher in the coming weeks as a result of drought and hot weather. Supply of head lettuce varieties such as iceberg will continue to come under pressure in the coming weeks
pushing prices higher. The average price per kilogram in December was more than double year ago levels in both Queensland and Victorian markets.

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Sources: Sources: AusMarket, ABS.

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