April's horticulture market update

Highlights for horticulture

• Substantial rainfall totals across Queensland regions are continuing to impact horticultural producers. This may see limited availability across the east coast over coming weeks. Vegetable producers throughout these regions are also struggling to get crops in the ground.
• The peak autumn planting of vegetable crops is underway with ongoing rainfall continuing to hamper efforts. This may have a longer-term impact with the reduced availability of these vegetables when harvest kicks off. The ongoing supply chain disruptions through Queensland and New South Wales have seen fruit and veg prices surge higher. The wholesale price index for both fruit and veg now sits well above the same point last season. Should seasonal weather disruptions ease throughout April, we may see prices decline coming into May.
• From a trade perspective, the direct impact of 10 per cent US import tariffs on the horticultural sector is expected to be relatively limited. However, we would expect the shifting trade flows to result in more competitive markets for citrus exports. Having said this, citrus greening disease (HBL) in Florida should support demand for Australian citrus. The other key risk to the Australian horticultural sector remains the prospect of a slowing Chinese economy. China remains by far our largest market for horticultural exports. A hit to the Chinese economy would be keenly felt, particularly across our fruit and nut sectors.

Sean Hickey

Senior Agricultural Analyst

Sean is our Insights specialist for the horticulture sector, utilising both his time spent within the industry alongside a Bachelor of Commerce to produce informed market analysis and commentary.