Record-breaking year for Australian exports

Record-breaking year for Australian exports

By Andréa Magiafoglou, CEO, Australian Horticultural Exporters’ and Importers’ Association.

The 2019/20 trade data for Australian fresh fruit and vegetable exports is in, with combined fruit and vegetable exports reaching a total of 762,840 tonnes (up 4.1%) valued at $1.84 billion. This result is a record breaker for the seventh consecutive year and was buoyed by strong outcomes for fruit exports at 547,137 tonnes (up 9.5% from 2018/19) and helped buffer a 7.4% volume reduction in vegetable exports over the same time period.

Aussie fruit find favour

Across fresh fruit, China remains the most prominent export market destination by both volume and value (156,372 tonnes; $536.5 million). However, export volume growth has eased from the substantial increases seen in previous years when strong gains in table grape and citrus exports coincided with new and/or improved market access conditions for stone fruit.

Japan has slid into the number two market for Australian fresh fruit exports by both value and volume (59,655 tonnes; $132.6 million), edging out Hong Kong which eased 4% by dollar value and 4.8% by volume; a reduction contributed to by increased direct trade to China. Overall fruit export volumes to Japan increased by 9% during 2019/20, with melon exports continuing to rise since entering the market in 2016.

Singapore and Indonesia round out the top 5 markets for Australian fresh fruit exports, with Indonesia recording a 23% decrease in volume driven by challenges with import licensing on table grape exports to this market.

Slight drop for veg

Full year trade results for fresh vegetable exports indicate a 7.4% easing in volume to 215,700 tonnes, however value remained steadier at $290 million, 3% down from the previous year. Singapore remains the leading market by value (at $52.4 million), and second largest by volume after the United Arab Emirates (UAE).

Of all fresh vegetable exports to Singapore, carrots accounted for around 48% by volume at 13,500 tonnes and remain relatively steady compared to export volumes from previous years. Pumpkins lifted 24% by volume, while broccoli exports to Singapore declined 30%, mainly driven by challenging production conditions in 2019 and COVID-19 supply chain disruptions in 2020.

The UAE, Australia’s largest fresh vegetable export market by volume, remained relatively steady at 36,000 tonnes at $34.2 million. Onions to the UAE lifted to 3,500 tonnes, a 78% increase from 2018/19, with carrots continuing to contribute more than 80% of all Australian fresh vegetable exports to the UAE.

COVID-19 disruptions

The above trade results for 2019/20 would not be complete without a brief commentary on COVID-19 impacts on fresh horticultural exports. The data outcomes reported above only partly reflect COVID-19 disruptions. Various commodity groups are affected differently, and impacts shift as the landscape changes and seasons progress. As commented on previously, and to restate what is well known within industry, supply chain disruptions globally have created a challenging environment for fresh horticultural exporters and importers. However, a unifying shift towards coordination across horticultural industry bodies, supply chain participants, and federal and state governments has placed Australian exporters in good stead to optimise and expand on available opportunities to counter these ongoing challenges. The lessons and solutions we apply today will support and refine how we conduct business tomorrow, and ultimately provide a stronger and more resilient horticultural export industry in years to come.

Industry forum soon

The Australian Horticultural Exporters’ and Importers’ Association is looking forward to holding the next Industry Forum in early 2021. The Industry Forum

is designed to connect members, update industry on the state of the global market and hear directly from Australian Government representatives involved in horticulture trade. Previous years have attracted leading decision-makers involved in Australia’s international fresh produce trade with vibrant discussions covering key issues facing the sector. The Industry Forum is open to members and non-members alike. More information will be provided once details are finalised.

Fresh Fruit And Vegetable Exports - 2019/20

Fresh Fruit

499,521 t up to 9.5% from 2018/19

1,553.7 m up to 10.9% from 2018/19

Fresh Vegetables

215,702 t up to -7.4% from 2018/19

290 m down to 2.9% from 2018/19