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Insights June 2022

16 June 2022 |Horticulture
Workers in the field

Insights June 2022

16 June 2022 |Horticulture
The June update provides an analysis of production and pricing trends for Australian horticulture producers.

Commodity Overview:

  • Production challenges throughout Queensland has left a supply gap, leading to elevated prices.
  • Citrus harvest is in full swing with strong production forecast, although fruit is on the smaller side.
  • Avocado prices remained constrained by strong supply. Growers are dumping lower quality fruit rather than transporting it for processing.

Heavy rainfall and flooding throughout key growing regions in Queensland over the last few months are now beginning to be felt by consumers at the cash register. Crops that were wiped out have left a significant supply gap in the market which will see prices remain elevated over the next month. Higher transport costs, supply chain disruptions and input costs are continuing to impact growers.

Fruit

The Australian citrus season is now in full swing with strong production forecast throughout most regions. Queensland and parts of northern New South Wales may see some poorer quality fruit following heavy rainfall. The Sunraysia and Riverland have seen strong production volumes, although fruit is a little smaller than average. Exports to Japan are exceeding previous years with shipments to China expected to pick up pace over the coming months. Reports of high fruit fly numbers will be concerning to growers in the Mallee and Riverland.

Strong avocado production is keeping prices constrained at the checkout. Prices are not expected to return to long term averages for some time yet. Banana prices are currently sitting slightly above average. Prices have moved higher over the past month. Banana production has been impacted by recent cold snaps in Queensland which will impact supply.

Vegetables

Australian vegetable prices are continuing to hit new highs. Floods throughout Queensland and New South Wales (the key vegetable growing states at this time of year) completely wiped-out crops in March and early May with heavy rainfall also negatively impacting sowing. This has left a gap in supply with lettuce, potatoes, beetroot, broccoli, beans, tomatoes, and capsicums seeing the largest impact. It is likely to take a couple of months for the next crops to reach maturity which will keep prices elevated over this time.

Nuts

Almond harvest is now at an end following a busy three-month harvest period. The Almond Board of Australia has revised the 2022 Australian crop size down to 138,650 tonnes. This is in comparison to a forecast almond crop of almost 145,000 tonnes just prior to harvest. The downward revision to forecasts has been driven by wet weather throughout key growing regions. This weather has impacted the quality of production and total saleable number of almonds.

* The Citrus index includes oranges, mandarins, limes, and lemons.
** The Leafy vegetable index includes lettuce, Chinese Buk choy, cabbages, brussels, baby spinach, rocket and mesculin
Sources: Ausmarket Consultants, Rural Bank

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